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Since Donald Trump became president-elect just over a month ago, nearly $10 billion has flowed into spot bitcoin in the United States. ETFsWhich shows growing optimism that his administration will support the cryptocurrency industry.
According to According to Bloomberg, dozens of funds from large issuers including BlackRock and Fidelity Investments have received about $9.9 billion in net inflows into various Bitcoin ETFs since November 5, bringing their total assets to about $113 billion.
Trump’s appointments signal a shift toward pro-crypto regulation
Trump’s recent picks, such as champion digital assets Driving The US Securities and Exchange Commission (SEC) and the creation of a White House official position for artificial intelligence and cryptocurrencies signal a shift toward a friendlier regulatory climate.
It is worth noting that Trump praised the concept of creating a national reserve for Bitcoin, which has bipartisan support in Congress, with The pro-encryption senator Cynthia Loomis in the foreground.
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Bitcoin recently crossed the $100,000 mark for the first time on December 5, and was trading at around $96,898 as of Monday. The cryptocurrency’s six-week winning streak is the longest since Market madness of 2021But analysts are still concerned about volatility.
David Lawant, head of research at leading cryptocurrency firm FalconX, noted that a sustained rally above the $100,000 level will likely entail other positive catalysts, as BTC struggles to regain this level with stability after advancing over the past four days.
Bitcoin rise promotes careful strategy and peers
Bloomberg too Notes The positive atmosphere surrounding cryptocurrencies has led to a significant rebound among companies that have followed MicroStrategy’s strategy of selling convertible bonds to fund Bitcoin purchases.
MicroStrategy alone has sold $6.2 billion in convertibles this year and intends to raise an additional $21 billion through fixed income offerings. Other companies, including MARA Holdings and Core Scientific, have raised significant funds to back their Bitcoin acquisitions.
Microstrategy stockMSTR shares are up 73% since Donald Trump’s election, while MARA, Riot Platforms, and Core Scientific are up 63%, 33%, and 30%, respectively.
This trend is very similar to Bitcoin’s growth of approximately 40% over the same period. With a market capitalization approaching $2 trillion, Bitcoin’s recent rise has dramatically increased MicroStrategy’s assets, which are now worth more than $41 billion.
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Final terms related to encryption Transferable deals They stand out, especially since many of them are structured with zero coupons, allowing investors to engage in convertible arbitrage.
Despite the high demand for these tools, there seems to be little concern about the potential decline in Bitcoin prices. Larger players in the market feel compelled to issue convertible bonds to remain competitive, noted Raj Imtiaz, head of convertible equity and equity derivatives advisory at ICR Capital LLC.
“If your competitor has a large war chest funded with very low coupons and you’re not tapping the market, you’re at a competitive disadvantage,” he said. “You almost have to issue remittances to stay competitive in the cryptocurrency space.”
Featured image of DALL-E, chart from TradingView.com
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