Sharp Pick Up in Demand: BTC Price Aims for $69k as Inflows into Bitcoin Hit A New Record of $8.9 Billion

Bitcoin’s surge is just a “confirmation of an incredibly strong market setup.” Ether “trending like a dream” also made a new high at $4,845, while Tron surprisingly had 3rd largest inflow and DOT had its largest weekly inflow on record.


Inflows into Bitcoin investment products have hit a record $8.9 billion so far this year, surpassing last year’s $6.7 bln record high, as per the weekly data from digital asset manager CoinShares.

Amidst this, early on Tuesday, Bitcoin hit a new all-time high at $68,660 as investors buy the cryptocurrency on positive momentum, as an inflationary hedge, and more widespread government acceptance.

For the week ending November 5, out of the total $174 million of inflows, Bitcoin accounted for $95 million of it. During this 8-week bull run, Bitcoins’ total inflows have been $2.8 bln, with its year-to-date inflows coming at a record $6.4 billion.

“The BTC price surge is just a confirmation of an incredibly strong market setup that has been developing throughout October,” said Mikkel Morch, executive director at crypto hedge fund ARK36.

“As bitcoin exchange balance is at a three-year low while long-term holder supply is at an all-time high, there are simply too few bitcoins available to keep up with the demand.”

Enthusiasm for crypto adoption and worry about inflation is driving the momentum into the asset class. Much like crypto, risk-on sentiments can also be seen in the global stock market, which is hitting new highs as investors welcome the passage of a trillion-dollar U.S. infrastructure spending bill.

The S&P 500 and the Nasdaq extended their gains to eight straight sessions while Dow Jones meanwhile notched its second consecutive record closing high.

Even gold has managed to rise to a two-month high, above $1,820 per ounce, bolstered by a weaker dollar and persistent inflation concerns.

Additionally, Q4 seasonality favors the cryptocurrency, and even astrology sees the market rallying going into the new year.

Excluding Bitcoin, cryptocurrency products posted their 12th consecutive week of inflows from institutional investors.

Ether, which also made a new high at $4,845, saw $31.4 million of inflows last week, reflecting renewed positive sentiment.

“Crypto is where the fast money is at,” said Chris Weston, head of research at brokerage Pepperstone. “(Ether) is trending like a dream, and I'd be long and strong here,” he added. “Clients are net-long, with 79% of open positions held long, and I can sense the $5k party could get going soon.”

While Ehereum’s market share has been declining as Bitcoin’s dominance grew over recent months, its strong price performance sign with inflows pushed its assets under managed to a record high of $20 billion as well compared to Bitcoin’s $53.3 billion.

Surprisingly, Justin Sun founded Tron recorded 3rd largest inflows at $21.9 million, bringing its year-to-date inflows to $79 million, making it the 8th largest by AUM. TRX 1.17% TRON / USD TRXUSD $ 0.09
$0.001.17%
Volume 1.65 b Change $0.00 Open $0.09 Circulating 101.89 b Market Cap 9.47 b
19 h Over 4.4 Billion Added in Total Stablecoin Supply in the First Week of December 1 d Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows 4 d Crypto Market Tanks: Bitcoin Correlation with S&P 500 Reaches 2021 High & USD Longs at Highest Level since June 2019

AUM at Grayscale and CoinShares also rose last week to $55.67 billion and $5.5 billion, respectively.

Altcoins remain popular with markable inflows from Polkadot totaling $9.6 million, representing its largest weekly on record. DOT -4.61% Polkadot / USD DOTUSD $ 29.51
-$1.36-4.61%
Volume 1.65 b Change -$1.36 Open $29.51 Circulating 987.58 m Market Cap 29.14 b
1 d Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows 1 w Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM 1 w Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe

Solana and Cardano also saw inflows of $8.5 million and $5 million respectively. Litecoin was the only asset that recorded outflows of $1.9 million. SOL -3.24% Solana / USD SOLUSD $ 192.55
-$6.24-3.24%
Volume 2.44 b Change -$6.24 Open $192.55 Circulating 307.35 m Market Cap 59.18 b
2 h Bitcoin Acting Like A Risk Asset, Struggling with Rising Macro Uncertainty 19 h Over 4.4 Billion Added in Total Stablecoin Supply in the First Week of December 1 d Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows
ADA -2.80% Cardano / USD ADAUSD $ 1.40
-$0.04-2.80%
Volume 1.88 b Change -$0.04 Open $1.40 Circulating 33.37 b Market Cap 46.71 b
1 d Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows 1 d 55% of Bitcoin Investors Bought over the Last 12 Months, US Consumers More Aware of DOGE than Ether 1 w Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM
LTC 1.42% Litecoin / USD LTCUSD $ 165.80
$2.351.42%
Volume 1.76 b Change $2.35 Open $165.80 Circulating 69.14 m Market Cap 11.46 b
1 d 55% of Bitcoin Investors Bought over the Last 12 Months, US Consumers More Aware of DOGE than Ether 4 d Crypto Market Tanks: Bitcoin Correlation with S&P 500 Reaches 2021 High & USD Longs at Highest Level since June 2019 1 w Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe

“We're getting the feeling that the market has shifted,” said Matthew Dibb, COO at Singapore-based crypto asset manager Stack Funds, pointing to a sharp pick up in demand from large investors and even pension funds.

“People are now figuring out that not having any exposure, even a small amount, is probably not a good thing moving forward, so they're having to allocate at this price.”

Overall, the total market cap has now surpassed $3 trillion.

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