Bitcoin (BTC) has reached $109,000 ahead of Donald Trump’s inauguration, marking a new high for the primary currency. This comes as the market expects Trump to build a US Bitcoin reserve.
Similarly, BTC’s funding rate has spiked to 0.035%, the highest since December, showing increased speculation as its price surged to a new all-time high. Earlier this month, the funding rate briefly turned negative when Bitcoin was around $94,000, marking a potential price bottom.
A positive funding rate suggests traders betting on price increases (longs) pay those betting on decreases (shorts), indicating optimism, yet excessive bullishness can lead to market overheating and potential reversals, and the current accumulation trend suggests room for further growth.
Bitcoin’s rally has also boosted other cryptocurrencies, underpinned by the increasing optimism over potential pro-crypto regulatory and policy changes tied to the US inauguration.
Bitcoin Investment Products Skyrocket
Crypto funds managed by major firms like BlackRock, Fidelity, and Grayscale saw $2.2 billion in net inflows last week, the largest this year, according to CoinShares. This surge, driven by “Trump euphoria” ahead of Inauguration Day and rising crypto prices, pushed total assets under management in these funds to a record $171 billion.
Global exchange-traded product (ETP) trading volumes also remained strong at $21 billion, accounting for 34% of BTC trading on trusted exchanges.
U.S.-based funds led the inflows with $2.1 billion, while Switzerland and Canada added $88.9 million and $13.4 million, respectively. In contrast, Sweden and Germany experienced outflows of $14.5 million and $2.4 million.
Bitcoin investment products dominated inflows, adding $1.9 billion last week and reaching $2.7 billion year-to-date. U.S. spot Bitcoin ETFs alone contributed $1.86 billion.
Ethereum funds also reversed earlier losses, recording $246 million in net inflows, with U.S. spot Ethereum ETFs accounting for $212 million.
Read more: Swiss Government-Owned PostFinance To Launch Ethereum Staking for 2.7 Million Customers
XRP investment products gained $31 million last week, continuing an inflow streak of $484 million since November, fueled by XRP’s first all-time high in seven years.
Disclaimer
This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
