Ever since the US presidential elections in the middle of last week, the spot Bitcoin ETFs had enjoyed a massive demand trend with a couple of $1+ billion inflow days before a slight change in investors’ tactics.

The spot Ethereum ETFs also had some noteworthy days but ended the week in the red.

Billions Enter BTC ETFs

Investors had a cautious approach toward the spot Bitcoin ETFs ahead of the US elections but went on an accumulation spree after the dust settled. As reported last week, the net inflows for the three full trading days after it became known that Trump will be the next president were close to $2.3 billion.

The trend continued into this business week, with a whopping $1,114.1 billion entering the funds on Monday. The positive numbers for Tuesday and Wednesday were at $817.5 million and $510.1 million. As such, the total inflows since the elections skyrocketed to nearly $5 billion in about a week.

However, this is where the landscape changed as investors pulled out $400.7 million on Thursday and $239.6 million on Friday. Consequently, the business week ended with a massive $1,801.4 billion in net inflows, but questions were raised due to the two consecutive days in the red on Thursday and Friday.

Within this timeframe, BTC’s price shot up to $93,800 on Wednesday where it peaked for its latest all-time high and retraced in the following days coinciding with the ETF fund allocations.

The silver lining is that BlackRock’s IBIT, the world’s largest BTC ETF, continues to attract funds with seven consecutive days of net inflows.

Now 7 straight days of inflows for iShares Bitcoin ETF (IBIT)…

Nearly $3.4bil.

For context, that $3.4bil exceeds the *total lifetime* inflows for every other 2024 ETF launch except FBTC.

That’s out of 615 new ETFs.

IBIT now approaching $30bil in total inflows.

Ridiculous.

— Nate Geraci (@NateGeraci) November 16, 2024

ETH ETFs Also in the Green

The spot Ethereum ETFs also had a strong week; in fact, their best ever, especially the first three days. In them, the funds saw $295.5 million in net inflows on Monday, $135.9 million on Tuesday, and $146.9 million on Wednesday.

Although the trend also reversed on Thursday and Friday, with minor outflows of $3.2 million and $41.2 million, respectively, the week ended well in the green. This puts the number for the week at $533.9 million, which now means that the Ethereum ETFs are overall in the green for the first time.

ETH’s price peaked during the week at around $3,500 but has lost about $400 since then and sits at $3,100 now.

The trailing 12-month percentage change for all items in the Consumer Price Index (CPI) fell to 2.6% in October, according to the latest US Bureau of Labor Statistics data out Wednesday.

That may signal the beginning of a bull market in dollar-denominated assets across the board as the economy roars into 2025. The CPI measures the rate of gain or loss in dollar purchasing power over time. A higher CPI means prices for the typical basket of consumer goods are going up.

From March through September, the CPI fell steadily, prompting the US central bank to cut rates in September. After that, Bitcoin’s price began to rise through October, as well as Wall Street stocks.

US stock benchmarks like the S&P 500 Index set new all-time high records this month and last. After the US election held on Nov. 5, Bitcoin rocketed to a fresh peak. The largest digital asset marked a new all time high above $93,000 on Wednesday.

Fed Rate Cuts Whip Deflation

Cooling from 3.5% to 2.4% in Sept, the rate of change of year-over-year inflation fell 25.71% since March. Over that same time period, the S&P 500 gained 8.59%, while Bitcoin’s price fell -1.53%. Now that inflation is moving back up again, will BTC’s price continue to chart new all-time highs?

Santiment analysts said on Wednesday that they expect a Bitcoin rally deep into the six figures in 2025, as high as $150,000 or $200,000.

Last December, Bitcoin ETF issuer VanEck predicted a Bitcoin price of $100,000 by the end of 2024. The cryptocurrency appears poised to reach that milestone in the timeframe specified by two of the company’s analysts.

Are Stocks and BTC Re-Coupling?

As the dollar printer’s rising tide lifts up all worthy boats, daily movements in the prices of Bitcoin and stocks are beginning to correlate again.

The 30D BTC Pearson Correlation, after reaching a 44-month high of 0.89 (on a scale of -1 to 1) on Sept. 26, began to slide to 0.49 on the eve of the US elections. By the time of the Labor Department’s fresh CPI print on Wednesday, that figure bounced back to 0.80.

Part of the reason is that the same institutions are buying both with money hot off the press. Popular Bitcoin investment analyst Lark Davis remarked, “BlackRock just keeps buying.”

Between Nov. 6 and Nov. 13, Wall Street sold over $4.73 billion worth of Bitcoin ETFs. The institutional crowd cooled off on Thursday, with $400 billion in net outflows, but BlackRock’s investors were happy to buy the dip with $126 million in net BTC sales Thursday.

“BlackRock knows,” replied one Ethereum analyst on Davis’ thread.

Despite bitcoin’s (BTC) remarkable ascent to $93,400 over the last few days, analysts at the market analytics platform CryptoQuant say the cryptocurrency is still not overvalued and that the $100,000 region could be its next victim.

According to a weekly report, the Trader On-chain realized max band suggests that BTC could crush the $100,000 target in the coming weeks as demand grows and stablecoin liquidity keeps rising by millions daily. BTC reached this max band in March when it rallied past $70,000 for the first time.

BTC to Crush $100K Next

One metric that shows BTC is not overvalued is the Market Value to Realized Value (MVRV) ratio. This indicator is still outside the overvalued territory despite bitcoin’s 30% rally since Donald Trump won the United States presidential election.

CryptoQuant’s prediction that BTC could smash $100,000 next is substantiated by surging demand growth. Bitcoin Apparent demand is currently expanding, indicating that new investors are invading the market.

Although apparent demand has been positive since early October, BTC demand from U.S. investors returned in early November after the presidential election. This is seen in the Coinbase Bitcoin price premium, which turned positive again after Trump’s victory.

Miners Are Beginning to Sell

As apparent demand continues expanding, the market cap of stablecoins is growing, and the cryptocurrencies are increasingly finding their way into exchanges. CryptoQuant has also maintained that the market can only see a sustained BTC rally if liquidity starts to improve, and that is the state of the market.

The market cap of Tether (USDT) has increased by $5 billion in the last two months, with over $3.2 billion tokens flowing into crypto exchanges since the U.S. presidential election on November 5. CryptoQuant analysts say this is the largest daily net flow of USDT into exchanges since November 2021

While rising stablecoin liquidity increases the possibility of higher crypto prices, analysts note that the market could witness minor selling pressure as large miners look to realize some profits. So far, miners with a balance of 100 to 1,000 BTC have reduced their holdings by at least 2,000 BTC, so the amount of assets sold is still small; however, CryptoQuant says it is crucial to keep monitoring these market participants as supply could spike soon.