Bitcoin (BTC) experienced a significant surge, climbing above $116,000, driven by the latest all-time high of the S&P 500 and growing expectations for a more accommodative monetary policy from the U.S. Federal Reserve. Investors are increasingly hopeful as evidence shows Bitcoin miners are accumulating the cryptocurrency at a rate reminiscent of past price rallies.
Recent data from GlassNode indicates that miners’ wallets have seen consistent net inflows for three consecutive weeks, with a peak inflow of 573 BTC per day noted on Tuesday, the highest since late October 2023. This pattern of accumulation last year was followed by a remarkable 48% price increase, prompting questions about the potential for Bitcoin to reach new highs, with some speculating a run toward $150,000 could be on the horizon.
The positive sentiment is reinforced by substantial inflows into Bitcoin spot exchange-traded funds (ETFs) and ongoing corporate acquisitions by firms such as MicroStrategy, Metaplanet, and Cango Inc. According to BitcoinTreasuries.NET, the total Bitcoin reserves held by the top 100 public companies surpassed 1 million BTC for the first time in September.
Despite some uncertainty regarding its potential inclusion in the S&P 500 index, MicroStrategy registered another $220 million Bitcoin purchase in a filing with the U.S. Securities and Exchange Commission. With a market capitalization of $95 billion, the company ranks among the largest listed entities in the U.S., surpassing notable firms like Moody’s Corp, General Dynamics, and Dell Technologies.
The inflow of funds into U.S.-listed spot Bitcoin ETFs has been promising, with $1.3 billion added between Wednesday and Thursday, leading to total assets under management reaching $148 billion. The iShares Bitcoin Trust remains the dominant player with $87.5 billion, followed by the Fidelity Wise Origin Bitcoin Fund at $23 billion and Grayscale Bitcoin Trust at $20.6 billion. For perspective, gold ETFs represent the largest tradable asset class at $431 billion, while the overall gold market is valued at $24.7 trillion. Even with Bitcoin’s ETF industry launching just in 2024, it shows significant penetration relative to its $2.3 trillion market capitalization.
However, even as some traders project a 75% chance that U.S. interest rates will drop to 3.5% or lower by the end of 2025, $140,000 is not a guaranteed milestone for Bitcoin. Recent findings from the University of Michigan’s consumer sentiment survey revealed that consumer confidence fell more than anticipated in September, while long-run inflation expectations rose to 3.9%. These factors, combined with fears over slowing economic growth, may lead traders to adopt a more cautious approach in the coming weeks.
While the persistent accumulation of Bitcoin by miners and corporations establishes a bullish tone in the market, the broader economic uncertainties could temper expectations for rapid price gains in the near future.
