Bitcoin Breaks $89,000 As Institutions Poured Nearly $2B Into Crypto Last Week

Key Takeaways:

• Bitcoin has surpassed $89,000 for the first time amid growing excitement in the bull market.
• The global crypto market cap exceeded $3 trillion for the first time in three years, with Bitcoin's market cap topping $1.75T.
• Crypto inflows last week amounted to $1.98 billion, driven by supportive macroeconomic conditions.

Bitcoin (BTC) has surpassed $89,000 for the first time, fueled by ongoing excitement in the bull market. Following Donald Trump’s election as the 47th president of the United States, the Republican Party seems more poised to take control of the House of Representatives, having already secured a majority in the Senate.

This political shift has contributed to nearly $2 billion flowing into cryptocurrency investment products recently.

Bitcoin Rallies Close to $90,000

The price of Bitcoin has been reaching new peaks since last Wednesday, November 6, the second day of the elections. Over the past 24 hours, Bitcoin has increased by 10.22%, over 30% in the last week, and more than 40% in the past month. At the time of writing, it changes hands for $89,127.

Meanwhile, alongside Bitcoin setting new records, other cryptocurrencies such as Ethereum (ETH) have surpassed $3,300, Dogecoin (DOGE) has jumped over 19% in the last day to exceed $0.33, and Aptos (APT) has risen by nearly 20% since yesterday.

Related: Dogecoin Hits $0.21 for the First Time Since April: Why’s DOGE Going Up?

This wide positive performance has driven the total value of the global crypto market to exceed $3 trillion for the first time in three years, according to crypto data provider CoinGecko at the time of reporting.

At the same time, BTC's market capitalization has surpassed $1.75 trillion, making it the 8th largest asset across all asset classes, including public companies, precious metals, cryptocurrencies, and exchange-traded products (ETPs). It has recently overtaken Silver, which currently has a market capitalization of $1.73 trillion.

Crypto Products Saw an Inflow of Nearly $2 Billion

This massive surge in the prices of Bitcoin and cryptocurrencies followed the influx of almost $2 billion from investors into crypto products in just a week, as reported by digital assets manager CoinShares.

In its recent Digital Asset Fund Flows report, CoinShares indicates that crypto investment products experienced a notable increase in inflows, totaling $1.98 billion on a net basis last week.

CoinShares links the influx of investment to macroeconomic developments and changes in U.S. political dynamics.

“A combination of a supportive macro environment and seismic shifts in the U.S. political system being the likely reason for such supportive investor sentiment,” the report states.

Most of the recent crypto inflows were concentrated in the U.S., which witnessed inflows amounting to $1.95 billion, while Europe experienced inflows from Switzerland and Germany, totaling $23 million and $20 million, respectively.

Furthermore, global assets under management have reached a record high of $116 billion following last week's price increases. Trading volumes increased by $20 billion, not a new high but the largest since April.

One of the leading companies contributing to these significant adoptions is MicroStrategy, which recently revealed that it bought an additional 27,200 Bitcoin for approximately $2.03 billion, at an average cost of $74,463 per bitcoin.

MicroStrategy has acquired 27,200 BTC for ~$2.03 billion at ~$74,463 per #bitcoin and has achieved BTC Yield of 7.3% QTD and 26.4% YTD. As of 11/10/2024, we hodl 279,420 $BTC acquired for ~$11.9 billion at ~$42,692 per bitcoin. $MSTR https://t.co/uCt8nNUVqd

— Michael Saylor⚡️ (@saylor) November 11, 2024

Its actions indicate that its investment in Bitcoin is poised to pay big rewards in the upcoming years, which is already reflected in the company stocks' price.

MicroStrategy's (MSTR) stock surged by 23.7% in afternoon trading and is currently trading above its highest closing price of $313, achieved on March 10, 2000.

Related: Michael Saylor Forecasts Bitcoin Price to Soar to $13 Million by 2045