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Bitcoin (BTC) Revisits $101k on BTC-Spot ETF Inflows
On Thursday, the US BTC-spot ETF market registered net inflows of $766.7 million, extending the inflow streak to six sessions. Demand through BTC-spot ETFs set the tone for the Friday session, driving BTC through $100k.
Friday’s US BTC-spot ETF market flow trends continue to tilt the supply-demand balance in BTC’s favor. According to Farside Investors:
- Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $47.5 million.
- ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $24.9 million.
- However, Grayscale Bitcoin Trust (GBTC) had net outflows of $32.8 million.
Excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market registered net inflows of $119.6 million on Friday. IBIT could extend the winning streak to seven sessions, underscoring positive sentiment toward Trump’s recent SEC, US Treasury, and crypto Czar appointments.
On Friday, Bloomberg Intelligence Senior ETF Analyst Eric Balchunas announced a landmark moment for the US BTC-spot ETF market, saying,
“KING OF THE HILL: The US spot ETFs have just passed Satoshi in total bitcoin held, now hold more than 1.1m, more than anyone in the world, and they’re not even a year old yet, literally babies still. Mind blowing.”
The US BTC-spot ETF market holds 1,104,534 BTC on Thursday, above Satoshi Nakamoto’s 1,100,000 stockpile.
BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) has been crucial to the ETF market, with net inflows of $34,112 million since its launch. The US BTC-spot ETF market has had $33,152 million in total net inflows since January 11.
Bitcoin Strategic Reserve: Can BTC Hit $1 Million on US Government Demand
Bitcoin revisited $101k as US President-elect Donald Trump fueled hopes of BTC becoming a US strategic reserve asset. Trump nominated crypto-friendly former SEC Commissioner Paul Atkins for SEC Chair and Scott Bissent for US Treasury Secretary. Trump also appointed David Sacks as the Administration’s crypto Czar.
High-ranking crypto-friendly officials could pave the way for BTC to become a strategic reserve asset. Congress, the Federal Reserve, the Treasury Department, and the President must approve BTC as a strategic reserve asset.
Additionally, the US SEC and the Commodity Futures Trading Commission (CFTC) must establish clear regulatory guidelines, underscoring the importance of Trump’s picks and upcoming nominations.
Amicus Curiae attorney John E. Deaton criticized a recent Peter Schiff interview while underlying BTC’s price potential, stating,
“The incoming president, along with almost his entire administration is talking about an SBR (strategic BTC reserve) and Peter Schiff’s still saying Bitcoin is a terrible investment. Even Charles Schwab’s CEO (who doesn’t own Bitcoin and now feels silly for not buying it) recently said if an SBR happens, Bitcoin goes to $500K to $1M.”
Rick Wurster is the coming CEO of Charles Schwab and has plans to expand its crypto offering to its clients after regulations change.
Increased demand would counter oversupply risks, driving BTC to new highs.
Bitcoin Price Outlook
On Friday, BTC gained 2.68%, reversing Thursday’s 1.51% loss, closing at $99,695. Significantly, BTC revisited the $101k mark before retreating.
Near-term BTC price trends will depend on Trump’s Commodity Futures Trading Commission (CFTC) Chair nomination. A pro-crypto CFTC Chair could fuel speculation about BTC becoming a US strategic reserve asset.
However, investors should track potential oversupply signals. Mt. Gox and the US government could influence BTC trends with transfers to new wallets.
Mt.Gox currently holds 36,085 BTC, equivalent to $3.61 billion, to return to investors. Mt. Gox collapsed in February 2014, when BTC was less than $600. The crypto community expects creditors to cash out sizeable windfalls after being paid out in BTC. Additionally, the US government has a 198,109 BTC stockpile, equivalent to $19,76 billion.
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