Bitcoin‘s BTC/USD price surged to $69,670 on Monday morning, marking a 3.1% increase and approaching the $70,000 milestone for the first time since early June.
What Happened: This rally comes in the wake of former U.S. President Donald Trump‘s declaration at the Bitcoin 2024 conference to make the cryptocurrency a national strategic asset if re-elected in November.
The broader cryptocurrency market also saw significant gains, with Ethereum ETH/USD up 3.5% at $3,372. Bitcoin Cash BCH/USD and BRETT BRETT/USD, a new meme coin on the Base blockchain, led the day’s gains.
Solana‘s SOL/USD jumped 3%, outperforming other major tokens, while BNB Chain‘s BNB/USD and Ripple XRP/USD rose around 2%.
The bullish momentum in the crypto market is supported by substantial inflows into Bitcoin spot ETFs.
Last week, these ETFs received a net inflow of $535 million, according to data from SoSo Value.
BlackRock‘s IBIT ETF was a standout performer with a weekly net inflow of $758 million, while Fidelity‘s FBTC ETF added $29.61 million.
However, Grayscale‘s GBTC experienced a weekly net outflow of $120 million.
Despite this mixed performance, the total net asset value of Bitcoin spot ETFs has reached an impressive $62.095 billion.
Ethereum ETFs also saw significant activity, albeit with more mixed results.
On July 26, Ethereum spot ETFs recorded a total net outflow of $163 million.
Grayscale’s Ethereum Trust ETF ETHE experienced a substantial single-day outflow of $356 million.
However, this was partially offset by inflows into other Ethereum ETFs, with Grayscale’s mini ETF ETH seeing an inflow of $44.9426 million and BlackRock‘s ETHA attracting $87.2178 million.
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Why It Matters: Market intelligence platform Santiment reports the highest level of bullish sentiment since March 2023:
Meanwhile, Bitcoin futures open interest has surged to new highs, with almost $40 billion worth of leveraged positions open, according to Coinglass. Still, funding rates, the amount traders are paying for leveraged long or short positions, remain fairly muted at 10-15% for most major cryptocurrencies.
The upcoming Benzinga Future of Digital Assets event on Nov. 19 is expected to provide further insights into these market dynamics and the evolving regulatory landscape.
As the crypto market continues to mature and attract institutional interest, events like this become crucial for understanding the future trajectory of digital assets.
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