It has been just over two weeks since it became known that the self-proclaimed ‘pro-crypto’ candidate, Donald Trump, will be the next president of the US. The news was received with open arms by crypto investors as prices of all major assets skyrocketed to local or all-time peaks.
Expectedly, bitcoin was and still is at the forefront of gains. The asset stood below $70,000 before the elections, amid reports that this could be the last time it trades at that level, but went on a rampant run in the following weeks. Earlier today, the cryptocurrency tapped $99,500, which meant that its gains since Trump’s elections neared 50%.
Thank You, Bears
The most mentioned reasons behind this spectacular rally involve the US-based spot Bitcoin ETFs. After all, the funds, which were launched in January this year, attracted nearly $5 billion in the first week after the elections. There was a brief hiatus on November 14 and 15, but investors went on an accumulation spree in the past four trading days again.
This time, roughly $2 billion in net flows entered the ETFs, with BlackRock’s IBIT leading the pack. The world’s biggest BTC ETF now has nearly $31 billion in AUM.
While this seems like a prominent reason behind BTC’s price surge to just shy of $100,000, Santiment outlined another possibility. The analytics platform has frequently posted about counter-trades, in which prices tend to go in the opposite direction of the prevailing crowd sentiment. In this case, data shows that nay-sayers and non-believers dominate most social media channels to which Santiment said:
“Crypto markets move in the opposite direction of the majority’s expectations, so thank you fellow bears and non-believers for keeping up this historic run.”
With Bitcoin on the cusp of a six-figure market value for the first time in history (now reaching a new $99K ATH), social media speculation has become rampant. X, Reddit, Telegram, 4Chan, and BitcoinTalk are collectively mentioning $100K BTC price levels at the highest rate in… pic.twitter.com/yotDrwsxmk
— Santiment (@santimentfeed) November 21, 2024
When $100K?
This coveted milestone, which was the reason behind the 2021 laser-eye movement, came so close, yet it is so far. BTC was 0.5% away from tapping that level but has retraced by about a grand since then. This raises the question of when or if the last push will come.
Recent reports suggested that the FOMO levels are still quite low, which is typically an indicator of more potential gains. However, the Fear and Greed index has gone massively in favor of the latter since then, which usually signals an impending correction.
For now, the wait continues.
