Last week, Bitcoin (BTC) reached a new all-time high of $93,318, pushing its market capitalization to $1.8 trillion. This surge, which happened in under nine days with a 39.5 percent increase, shows growing interest in BTC on a global scale. US-traded spot Bitcoin ETFs reached $84 billion in assets under management, representing 66 percent of the total AUM of gold ETFs.
This phenomenon is expected to lead to further long-term growth in the cryptocurrency market and potentially reshape capital allocation for years to come. The US economy continues to show resilience, but also faces challenges, particularly in regards to inflation. October saw an increase in inflation, driven by rising shelter costs and used car prices, offset by declining energy prices.
The labor market remains strong, with low layoffs and rising wages supporting consumer spending. October’s retail sales exceeded expectations, but concerns about inflationary pressures from proposed tariffs and higher government spending complicate the Federal Reserve’s approach to interest rates. In the cryptocurrency sphere, the industry’s dynamic nature and rapid adaptation to market demands are on display.
SEC Chair Gary Gensler’s potential departure has sparked speculation, as his recent remarks suggest a focus on his legacy, which includes crypto regulation reforms. Retail platforms like Robinhood are expanding their cryptocurrency offerings, and there is growing momentum around the proposal for a US Bitcoin reserve.
Bitcoin enthusiasts Michael Saylor and Senator Cynthia Lummis advocate for expanding the US holdings of Bitcoin, with Saylor calling it “the greatest deal of the 21st century.”