AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Bitcoin rallies, reaching new highs as traders eye the $100,000 mark.
- U.S. policy shift and Bitcoin ETFs fuel strong institutional interest.
- Australian investors embrace crypto ETFs amid promising returns.
Bitcoin has recently captured the market's attention, surging to new highs and sparking predictions it may reach $100,000 in the coming weeks. On Tuesday, the world’s largest cryptocurrency jumped as much as 10%, setting a fresh all-time high of $89,599 USD ($136,288 AUD), marking its strongest gains since March 2023. This rally has also lifted the overall cryptocurrency market capitalization, which has now crossed its previous pandemic-era peak, exceeding $3 trillion USD.
A primary factor behind Bitcoin’s meteoric rise is the anticipated change in U.S. policy toward digital assets. President-elect Donald Trump’s support for cryptocurrencies, coupled with a Congress increasingly supportive of the sector, represents a sharp shift from the restrictive policies of the prior administration, particularly under SEC Chairman Gary Gensler. With this favorable regulatory environment, U.S.-based exchange-traded funds (ETFs) have seen a significant influx, as traders speculate Bitcoin could soon pass the $100,000 threshold.
One notable ETF, BlackRock’s iShares Bitcoin Trust (NYSE:IBTC), recorded a historic net inflow of $1.4 billion USD on Thursday, setting it ahead of the company’s 20-year-old gold ETF. This shift points to a changing landscape, where Bitcoin is increasingly viewed as a potential store of value and an inflation hedge. According to Coinstash co-founder Mena Theodorou, the growing preference for Bitcoin over traditional safe-haven assets like gold signifies a notable institutional tilt toward digital currency.
The upward trend in Bitcoin’s price reflects broader macroeconomic concerns. Although inflation has eased globally, Trump’s proposed spending plans have reignited concerns that inflationary pressures may return. Bitcoin advocates argue the cryptocurrency’s capped supply makes it an ideal hedge against such inflation, unlike fiat currencies that can be printed in limitless amounts by central banks.
In Australia, interest in Bitcoin and crypto-related investments is also gaining momentum. BetaShares’ Crypto Innovators Fund (ASX:CRYP) led October’s ETF performance with nearly 27% gains, while Bitcoin-focused ETFs from Monochrome, DigitalX, Global X, and VanEck also posted returns of 16% or more. VanEck’s Bitcoin ETF (ASX:EBTC) alone attracted $18.6 million AUD in inflows last month, underscoring increased confidence in cryptocurrency as a viable asset.
Australian crypto exchanges have mirrored this activity surge. Swyftx reported Bitcoin accounted for nearly a third of its trading volume on Tuesday, further emphasizing the prevailing bullish sentiment. Additionally, trading in popular alternative cryptocurrencies, including dogecoin—linked to high-profile endorsements from figures like Elon Musk—has also surged, contributing to the vibrant cryptocurrency market dynamics.
Bitcoin’s recent rally highlights the broader shift toward digital assets, with traders and institutions alike closely monitoring the cryptocurrency’s path toward the anticipated $100,000 milestone.
