Author: 636Marx

Half of the people in the global cryptocurrency community might explain the surge in Bitcoin as a result of Trump's election victory. However, I have emphasized in previous articles that the stable growth of digital currencies requires a continuous influx of capital. Nowadays, there is a voice among Westerners that the crisis in American banks is the fundamental reason for Bitcoin's rise.

As Bitcoin approaches the $90,000 mark, it enters a historic realm. I believe this surge is driven by supply constraints after the halving, increased institutional interest, and recent economic developments. These factors intertwine, making Bitcoin transcend pure speculative assets—it is increasingly seen as a tool to hedge against uncertainties in traditional markets.

Analysis of Bitcoin's 30% Weekly Surge

In 2023, Biden stepped in to address the Silicon Valley Bank collapse and promised to hold those responsible accountable. With the bankruptcy of major players like Silicon Valley Bank and Silvergate Bank, Bitcoin has regained public attention. The cyclical financial crises in the capital world highlight the vulnerabilities within the banking system and underscore the value of Bitcoin as a decentralized asset. Of course, Bitcoin's surge is not only attributed to past banking crises but also to recent political and economic changes in the United States.

Trump's Re-election, Economic Policies, and Market Impact

The result of the 2024 U.S. presidential election is Donald Trump's re-election, which has sparked optimism in the crypto market. Trump's proposed economic policies, including potential regulatory reforms favorable to the crypto and innovation sectors, could drive capital towards alternative assets like Bitcoin.

Today's traditional financial industry in the U.S. faces a greater crisis, with over 60 American banks heavily indebted and on the brink of bankruptcy. Arthur Hayes, former CEO of BitMEX, hinted that quantitative easing policies could push Bitcoin's price to unprecedented levels. If the Trump administration continues the credit expansion policies of the Biden administration, private capital will flow into Bitcoin, potentially driving its price to $500,000. If Bitcoin were to directly replace quantitative easing, it could break through $1 million.

Because solving the banking problem means depositing more dollars into banks! Letting Bitcoin solve the problem means depositing dollars into Bitcoin.

Ethereum ETF Inflows Hit Record High, Will ETH Follow BTC?

The second-largest cryptocurrency, Ethereum, has also attracted institutional investors' interest, especially after the debut of the Ethereum ETF. Recent data shows record capital inflows, which may signal that ETH is back on an upward trajectory. Especially by the end of this year, regulatory clarity surrounding the Ethereum ETF will become more pronounced.

The Role of Institutional Funds in Ethereum ETF Inflows

The Ethereum ETF attracted a record $295 million in inflows, surpassing the historical high in July. Fidelity's FETH attracted $115.5 million, while BlackRock's ETHA also showed strong interest. Even Grayscale, an institution focused on Bitcoin ETFs, saw its Ethereum Trust Bitwise receive $63.3 million in inflows. Why are institutions increasingly interested in Ethereum? Because it has matured beyond its utility in DeFi and NFTs, becoming a potential investment-grade asset.

How Are Altcoins Based on Ethereum Performing?

While Bitcoin dominates the headlines, Ethereum-based ERC-20 tokens like Shiba Inu (SHIB) surged 67% in the past week. A whale investor purchased 15.28 trillion tokens for $3,800 in 2020. This investor recently sold 100 billion SHIB tokens, realizing a profit of $2.85 million, with total earnings reaching $123 million, and still holds $75.2 million worth of SHIB.

Summary of My Analysis on Ethereum

In the past week, Ethereum's price rose by 38%, driven by post-election optimism and a broad rebound in the crypto market. If demand for the Ethereum ETF remains high, liquidity inflows and potential supply constraints could push ETH to new highs. I believe that regulatory progress on the Ethereum ETF could further drive capital inflows, attracting investors who may have previously focused only on Bitcoin.

For investors, the path forward depends on understanding the unique market dynamics: Bitcoin's scarcity model, the community-driven volatility of altcoins, and Ethereum's utility in DeFi and institutional portfolios. The coming months could be crucial for all three of these crypto assets; time is the only truth that tests the market!