Crypto Market Update: November 14, 2024
In the latest movements of the cryptocurrency markets, Bitcoin (BTC) has demonstrated resilience, maintaining a steady trading range around $91,000 after bouncing back from a brief dip to just above $89,000. This places Bitcoin just 2% off its recent all-time high of $93,445, which was reached on Wednesday afternoon. Over the past 24 hours, BTC has gained more than 4%, showing strong recovery momentum. Bitcoin exchange-traded funds (ETFs) saw a significant boost with $510 million in inflows on Wednesday alone, bringing the total ETF inflows for the past six days to a massive $4.7 billion. According to analyst Checkmate, Bitcoin ETFs are the dominant factor driving current demand for BTC, absorbing most of the selling activity from long-term holders. Meanwhile, CME open interest remains relatively flat, underscoring that this rally is driven by spot market activity.
In the U.S., the Republican party has gained control of the House of Representatives, completing a political trifecta with Donald Trump’s presidency and a successful flip of several Senate seats. This development is significant for the cryptocurrency industry, as the House has played a central role in advancing crypto-related legislation, particularly in the last year. With Republicans maintaining their slim majority, the passing of crypto-focused bills is likely to continue shaping the regulatory landscape for digital assets.
Meanwhile, institutional interest in cryptocurrency remains strong. A recent survey by digital asset bank Sygnum found that 57% of institutional respondents are planning to increase their exposure to digital assets, driven by a growing appetite for risk and long-term confidence in the market. The survey, which involved over 400 institutional and professional investors from 27 countries, highlighted that 65% of respondents are bullish on digital assets in the long run, and 63% are considering further allocations to crypto in the next three to six months.
Chart of the Day: Bitcoin Search Interest in the U.S.
The chart below from Google Trends illustrates the search interest for the term “bitcoin” in the United States over the past five years. Interest levels have recently surpassed those seen during the June 2022 market turmoil following the Terra/Luna collapse. This sustained retail interest in Bitcoin could lead to higher trading volumes and potentially drive prices upward, sparking a speculative frenzy in the market.
