Stay up to date with the CriptoTendencia WhatsApp channel: Instant news about Bitcoin, Altcoins, DeFi, NFT, Blockchain and Metaverse. Subscribe!
Inflows into Bitcoin spot ETFs during the month of November are on track to set new highs. In fact, entries into these products already exceed February numbers. This Friday is the last trading day of this month and the final amount will be known. Will this pace be maintained in December or will there be a cooling?
So far, data from Trading Different shows that BTC spot funds have attracted $6.2 billion so far in November. Meanwhile, during the month of February, in the midst of the approval fever, they totaled $6 billion. This shows that the Trump era is emerging as one of the great catalysts in the history of the crypto market.
The price of the largest Cryptocurrency experiences a growth of 38.62% during the last month ending this Friday. Expectations of the Republican victory in the November 5 elections caused large masses of capital to move into the crypto sector. This situation of optimism was faithfully replicated among the institutions.
Thus, flows into Bitcoin spot ETFs marked surprising days, especially BlackRock’s product, IBIT. And no wonder, the price of BTC emerged from a state of stagnation that it had been dragging on since March. At the height of November, the coin came within $300 of reaching the $100K milestone.
Bitcoin ETF Inflows Hit Record in November. Source: Trading Different
What to expect from Bitcoin spot ETFs in December?
One element to take into consideration in the financial world is that high percentage rallies cannot be sustained for a long time. In that sense, the enthusiasm for Trump’s victory could slow down in December, at least in the first part of the month.
Operators would be taking a breath and reorganizing their forces to prepare for 2025. In that sense, it is most likely that a new stage of stagnation will occur in the coming weeks. Of course, psychological market forces like the Santa Claus rally cannot be underestimated.
However, one should not lose sight of the fact that so far BTC investors have limited capital. Thus, this capital only represents a fraction of the liquidity that flows in other markets such as stocks or real estate. In short, the Capitals should take some time to assess the battlefield before jumping in again.
That lull could be December or early January. This reality could be expressed in Bitcoin ETFs. On the other hand, there is a possibility that December could become a bullish month and it is related to the FOMC meeting on the 17th-18th of that month.
Depending on how key inflation and employment indices perform, the Federal Reserve could react with a cut that generates optimism. The latter would lead to a new rally that takes the price of BTC to $100K before the end of the year, as predicted by Michael Saylor.
Related
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
