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Since Donald Trump was elected president a little over a month ago, nearly $10 billion has flooded the US Bitcoin scene. ETFsshowing growing optimism that his administration will support the cryptocurrency industry.
According to According to Bloomberg, a dozen funds from major investors including BlackRock and Fidelity Investments have received about $9.9 billion in net inflows into their various Bitcoin ETFs since November 5, bringing their total assets to about $113 billion.
Trump’s Appointments Signal Shift To Pro-Crypto Regulation
Trump’s latest choice, such as being a champion of digital goods to lead the US Securities and Exchange Commission (SEC) and the creation of a White House czar of artificial intelligence and crypto, indicate a shift to a friendly regulatory climate.
Notably, Trump has praised the idea of ​​establishing a Bitcoin depository, which receives bipartisan support in Congress, A pro-crypto Senator Cynthia Lummis leads the way.
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Bitcoin recently crossed the $100,000 mark for the first time on December 5, trading around $96,898 as of Monday. The six-week winning streak for cryptocurrency is the longest since 2021 market chaosbut analysts are still concerned about volatility.
David Lawant, head of research at crypto premier broker FalconX, noted that a continued push above the $100,000 milestone will likely require further stimulus, as BTC has struggled to recover this level while stabilizing after advancing four days ago.
Bitcoin Rally Improves MicroStrategy with Peers
Bloomberg again notes that the positive atmosphere surrounding cryptocurrencies has caused a large increase among companies that have followed MicroStrategy’s strategy of selling convertible bonds to finance the purchase of Bitcoin.
MicroStrategy alone sold $6.2 billion this year and aims to raise another $21 billion in fixed income contributions. Some companies, including MARA Holdings and Core Scientific, have successfully raised significant funds to support their Bitcoin purchases.
MicroStrategy’s stockMSTR, is up 73% since Donald Trump’s election, while shares of MARA, Riot Platforms, and Core Scientific are up 63%, 33%, and 30%, respectively.
This trend is almost identical to Bitcoin’s growth of about 40% during the same period. As the market capitalization approaches $ 2 trillion, the recent rise of Bitcoin has greatly increased the assets of MicroStrategy, which is now worth more than $ 41 billion.
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The latest terms related to crypto dynamic deals stand out, especially because many are structured with zero coupons, allowing investors to participate in convertible settlements.
Despite the high demand for these metals, there seems to be little concern about the fall in the price of Bitcoin. Raj Imteaz, head of equity and equity exit advisory at ICR Capital LLC, noted that major players in the market feel compelled to issue convertibles to remain competitive.
“If your competitor has a huge war fund funded by very low coupons and you haven’t bought the market, you’re at a competitive disadvantage,” he said. “You probably have to weed out the converted to stay competitive within crypto.”
Featured image from DALL-E, chart from TradingView.com
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