Bitcoin nears $100k after a 38% November surge, driven by Trump's win and strong ETF inflows
Bitcoin experienced significant momentum in November, positioning the cryptocurrency for one of its strongest months of the year, as reported by CNBC.
Following former President Donald Trump’s election victory, Bitcoin consistently reached new records throughout the month.
Coin Metrics data indicates Bitcoin is on track for a 38 percent monthly gain in November, its best performance since February, when it achieved a 45 percent rise after the launch of spot Bitcoin ETFs. This marked the first time Bitcoin set a new record since November 2021.
Intraday trading on Bitcoin saw prices rise by more than 2 percent, reaching $97,081.81, with a peak earlier in the day at $98,722.00.
In the broader market, Coinbase shares dropped 4.75 percent, while Bitcoin proxies MicroStrategy and Mara Holdings recorded gains of 0.67 percent and 1.86 percent, respectively.
November’s market dynamics were influenced by investor anticipation of Trump’s second term as president.
During his campaign, Trump presented himself as a pro-crypto candidate, vowing to lift the industry out of a period marked by unclear regulations and the US Securities and Exchange Commission’s (SEC) enforcement-focused approach under Chair Gary Gensler.
His victory provided a macroeconomic boost for Bitcoin, with implications including larger budget deficits, potential inflation, and shifts in the international role of the US dollar—all factors positively impacting Bitcoin’s price.
Bitcoin’s rally following Trump’s victory brought it within a few hundred dollars of the highly anticipated $100,000 milestone.
The renewed legitimacy of the crypto industry under his administration is seen as a catalyst for further growth.
Inflows into Bitcoin ETFs, led by BlackRock’s IBIT fund, surged, with record single-day inflows offsetting sell pressure from long-term holders who capitalized on the new highs. Options trading on Bitcoin ETFs also emerged during this period, introducing new opportunities for speculation.
Market bulls expect Bitcoin to surpass $100,000 by the end of 2024 and potentially double by 2025.
While Trump’s election had a significant short-term impact, many investors see Bitcoin’s fundamentals as the driving force for future gains.
The cryptocurrency is now less affected by regulatory uncertainties and continues to solidify its position as digital gold.
Long-term price growth is expected to be supported by reduced supply following April’s halving, increased institutional demand, and adoption by states and countries as a treasury reserve asset.
Historically, Bitcoin’s cycle peaks have occurred at least a year after a halving event, suggesting further growth potential in the coming years.
