Since Donald Trump was elected president a little over a month ago, nearly $10 billion has flooded into US spot bitcoin. ETFsReflecting growing optimism that his administration will support the cryptocurrency industry.
according to A dozen funds from major issuers, including BlackRock and Fidelity Investments, have received net inflows of about $9.9 billion into their various bitcoin ETFs since Nov. 5, bringing their total assets to about $113 billion, according to Bloomberg.
Trump’s appointments signal a shift toward pro-crypto regulation
Trump’s recent choices, like a digital asset champion leadership The US Securities and Exchange Commission (SEC) and the creation of a White House czar for artificial intelligence and crypto represent a shift towards a more friendly regulatory environment.
In particular, Trump has praised the concept of establishing a national bitcoin reserve, which is gaining bipartisan support in Congress. Pro-crypto senator Cynthia Loomis on lead.
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Bitcoin recently crossed the $100,000 mark for the first time on December 5, trading at around $96,898 as of Monday. The cryptocurrency’s six-week winning streak is the longest since then Market Frenzy of 2021But analysts remain concerned about volatility.
David Lavant, head of research at crypto premier broker FalconX, noted that a sustained push above the $100,000 milestone would likely require more positive catalysts, as BTC has been holding steady since the previous four-day rally. has struggled to regain the level.
Bitcoin Rally Raises Microstrategy and Companions
Bloomberg also Notes that the positive environment surrounding the cryptocurrency has resulted in a significant improvement in companies that have followed MicroStrategy’s strategy of selling convertible bonds to fund bitcoin purchases.
MicroStrategy has sold $6.2 billion in convertibles this year alone and intends to raise an additional $21 billion through fixed-income offerings. Other companies, including Mara Holdings and Core Scientific, have successfully secured significant funding for their Bitcoin acquisitions.
of micro strategy 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 similar to Bitcoin’s nearly 40% increase over the same period. With a market capitalization approaching $2 trillion, Bitcoin’s recent ascent has dramatically increased MicroStrategy’s assets, which are now worth more than $41 billion.
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Recent crypto-related terms Exchangeable deals Stand out, especially since many are built with zero coupons, allowing investors to engage in volatility arbitrage.
Despite the high demand for these instruments, there appears to be little concern about a potential Bitcoin price drop. Raj Imtiaz, Head of Convertibles and Equity Derivatives 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 large war chest funded at very low coupons and you haven’t tapped the market, you’re at a competitive disadvantage,” he said. “You almost have to issue converts to remain competitive within crypto.”
Featured image from DALL-E, chart from TradingView.com
