After the Bitcoin price registered an all-time high above US $106,000, it has slipped to around US $101,000 on the U.S. Federal Reserve’s hawkish tone during a recent press conference. Despite the third consecutive easing move to cut rates to the 4.25-4.50% range, Jerome Powell is projecting a slower path of further rate cuts to reflect hotter inflation readings in previous months and higher inflation expectations for the next year. On December 16, US spot and derivative Bitcoin ETFs collectively broke $129 billion in net assets, surpassing gold ETFs for the first time.
Despite significant selloffs earlier in the week, Bitcoin has successfully reclaimed the US$100,000 mark, as November’s US inflation data met expectations. Market participants are now anticipating a 25 basis point rate cut from the Federal Reserve. The recent surge in Bitcoin’s price has led U.S. spot Bitcoin ETFs to exceed the 1.1 million Bitcoin estimated to be held by Satoshi Nakamoto. Furthermore, Arkham Data indicates that BlackRock and Fidelity ETFs have acquired US$500 million worth of ETH over the past two days, marking all-time high inflows for Ethereum ETFs.
Bitcoin’s price hits US$100,000 for the first time in history, hitting an all-week high after a relatively flat week. The surge followed Donald Trump’s election victory, fuelling optimism about a more crypto-friendly administration and reduced regulatory pressures. In a significant move, Trump has nominated former SEC Commissioner Paul Atkins to lead the agency, alongside pro-crypto figures Perianne Boring and Caroline Pham as potential CFTC chairs. Meanwhile, Ethereum ETFs experienced a record-breaking $333 million in inflows, outpacing Bitcoin funds as investors embraced the “catch-up trade.” Despite this, BlackRock’s spot Bitcoin ETF, IBIT, reached a milestone of over 500,000 Bitcoin under management—equivalent to more than 2% of Bitcoin’s total supply.
