As Bitcoin (BTC) rallied to surpass $98000 yesterday, it also touched a new milestone by crossing $100 billion in assets in US Bitcoin ETFs.
The total Bitcoin ETFs stood at $104 billion on November 21 due to a strong bullish run in the crypto market since Donald Trump won the US election.
This bullish run in the market led to BTC price to go beyond $96,000, at first then it went past $98,000 which is a major gain from the point it started trading at the beginning of 2024.
Due to the ongoing surge, analysts are now suggesting that Bitcoin will rally to $150,000 while it almost reached $100,000 on November 22 end of the day.
Bitcoin ETFs were essential to achieve this milestone as the things started to turn around ever since spot BTC ETFs were launched in January 2024. In the course of the year, BlackRock's iShares Bitcoin Trust (IBIT) received $30 billion inflows while Fidelity accounted for more than $11 billion inflows.
These ETFs resulted in Bitcoin nearing the market cap of gold which has $120 billion assets in ETFs. Within a year of its launch, Bitcoin ETFs have covered 82% of the way to cross gold ETFs.
However, analysts like Mike Novogratz from Galaxy Digital have warned of a market correction, saying that BTC could decline to $80,000 in the near future as leverage is high on the crypto community.
The BTC price gain has spilled onto companies like MicroStrategy with more than 331,000 Bitcoin holdings. The company is planning to capitalise the surge and raise $3 billion to purchase more tokens. Similarly, companies like Marathon Holdings are investing more on Bitcoin.
.The trading volume of Bitcoin ETFs has risen to more than $70 billion with Grayscale accounting $20.6 billion of it, while BlackRock has the highest.
The recent price gain has also changed BTC correlation with gold which is now at a negative 0.66 because it decoupled from conventional safe haven assets.
In contrast, Bitcoin is now more correlated with stocks like Nasdaq and S&P 500 which depicts its growing ties with the equity markets.
The price volatility of BTC has touched 60, which means more price swings near the $100,000 level.
At the time of writing, Bitcoin was up 0.63% in the last 24 hours to trade at $99,287 while the trading volume declined by 22.05% to touch $80.66 billion and the market cap rose to $1.96 trillion.