The cryptocurrency market had one of its most vibrant weeks of the year on a bullish note. The price of Bitcoin surpassed $109,000 on Monday, while spot Bitcoin exchange-traded funds (ETFs) in the US recorded net inflows approaching $890 million. This impulse coincides with the market’s expectation of Donald Trump’s inauguration, an event that seems to have injected optimism into the financial markets.
Bitcoin ETFs with positive global flows
According to data from SoSoValue, Bitcoin ETFs in the US reached a net inflow of $887.15 million, marking the best week of the year for these financial products. The figures come against a backdrop of economic variability and as investors assess the prospects for economic policies under the Trump administration.
Among the big winners, BlackRock’s Bitcoin ETF (IBIT) led with more than $745 million in inflows, while Fidelity’s fund (FBTC) added $680 million. However, not everything was optimism: the Grayscale Bitcoin Trust (GBTC) recorded outflows of US$145 million, reflecting a consolidation of portfolios by some investors.
Changes in billionaires’ portfolios
Bitcoin’s appeal is also reflected in the movements of major investors. Some billionaires have begun to reduce their exposure to technology stocks such as Nvidia, which has seen explosive growth of 2,100% in the last five years thanks to demand for artificial intelligence (AI) chips. However, factors such as export restrictions to China and potential antitrust investigations have led investors such as Israel Englander (Millennium Management) and Yan Huo (Capula Management) to diversify into Bitcoin.
Englander increased his position in the BlackRock ETF by 12.6 million shares during the third quarter of 2024, while Huo added 1.1 million shares to his portfolio. This change in focus suggests renewed optimism towards the leading cryptocurrency, especially in a context of recent halving and long-term bullish projections.
As Nvidia faces structural challenges, Bitcoin emerges as an alternative with significant growth potential. Cathie Wood of Ark Invest predicts that the price of Bitcoin could skyrocket from $100,000 to $3.8 million by 2030. If this projection comes true, spot ETFs could see a 3,700% increase, transforming an investment from US$10,000 to US$380,000 in just five years.
However, these estimates should be taken with caution. Bitcoin, unlike traditional stocks, operates under a finite supply system of 21 million coinswith 19.9 million already mined. Halvings, like the recent one in April 2024, they reduce the mining reward every four yearsfurther limiting the issuance of new currencies.
What’s next for Bitcoin?
Market expectation is loaded with positive catalysts. From institutional backing from giants like BlackRock and Fidelity to the next scheduled supply reduction in 2028, the outlook looks bright for Bitcoin. The correlation between economic policies, macroeconomic optimism and institutional adoption suggests that cryptocurrency will continue to capture the attention of investors looking for alternatives in a world of financial uncertainty.
On the threshold of a new era under the Trump administration, Bitcoin is positioned as a strategic bet, both for diversification and long-term growth. The question is no longer whether Bitcoin can surpass its own ceiling, but how much higher it can go in the years to come.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
