Bitcoin’s success was fueled by investor optimism after Donald Trump's U.S. presidential victory and a traditionally bullish month for the crypto. The rally was also supported by rising interest in Bitcoin ETFs, which surpassed $100 billion in net assets for the first time. U.S. lawmakers and states like Texas are considering strategic Bitcoin reserves, which could signal increased institutional and governmental adoption.
Bitcoin Rallies 40+% in November
Bitcoin (BTC) was able to achieve a historic milestone in November of 2024 by recording its largest monthly price candle ever. After rising by more than 40% during the month, Bitcoin reached a new all-time high of $99,000. At press time, BTC was trading hands at $98,447.86, but analysts predict that the crypto king will soon break the six-figure mark.
Bitcoin’s price action over the past month (Source: CoinMarketCap)
The rally has been fueled by a surge in investor interest after Donald Trump’s victory in the 2024 U.S. presidential election, which boosted confidence in risk-on assets like cryptocurrencies. November is also traditionally a more bullish month for Bitcoin, and this year is no different.
With eight days left in the month, even more price jumps for BTC are a strong possibility. Historical data from CoinGlass reveals that November averaged returns of more than 46% for Bitcoin. This means that there is still more than enough room for BTC’s price to rise over the next few days.
Bitcoin monthly returns (Source: Coinglass)
Investor sentiment also reached “extreme greed” levels, and the Crypto Fear & Greed Index hit a score of 88 on Nov. 22. While this enthusiasm suggests the possibility for more price growth, past patterns indicate the potential for corrections. For instance, when the index reached a similar level in April of 2024, Bitcoin experienced an 18% correction in the weeks that followed.
As Bitcoin inches closer to $100,000, its role as a hedge against inflation is becoming more prominent. Marcin Kazmierczak, co-founder and COO of RedStone, believes Bitcoin’s zero inflation rate and finite supply are key attributes driving its appeal as “digital gold.” While its value proposition is strong, concerns about market leverage and growing greed have been raised.
Kris Marszalek, the CEO of Crypto.com, also warned on Nov. 12 that a period of deleveraging may be necessary before Bitcoin can comfortably surpass the six-figure threshold.
Texas Lawmakers Consider Strategic Bitcoin Reserve
Bitcoin’s momentum could also be boosted by the fact that Texan lawmakers are reportedly exploring the concept of creating a strategic Bitcoin reserve, according to the nonprofit advocacy group Satoshi Action Fund (SAF). During the North American Blockchain Summit on Nov. 21, SAF CEO Dennis Porter revealed that there has been ongoing discussions with a legislator about introducing such legislation in Texas. The state had a GDP of $2.4 trillion in 2022, which ranked as the world’s eighth-largest economy.
This idea is also gaining traction across the United States. In July, Senator Cynthia Lummis proposed a federal Bitcoin strategic reserve to hedge against the national debt. Pennsylvania lawmakers also introduced legislation allowing the state treasury to allocate up to 10% of its balance sheet to Bitcoin as a hedge against inflation.
Porter shared that a Bitcoin reserve offers not only protection against inflation but also shields U.S. Bitcoin miners from potential price suppression by foreign actors like Russia and China. This could provide at least some stability to the sector that has been struggling after April’s halving.
Porter compared the establishment of Bitcoin reserves to pivotal historical U.S. decisions, like the Louisiana Purchase and the acquisitions of Florida and Alaska. He also mentioned momentum for such initiatives, fueled in part by President-elect Donald Trump’s campaign promise to create a strategic Bitcoin stockpile.
This concept is also not limited to the U.S. Polish presidential candidate Sławomir Mentzen recently pledged to establish a Bitcoin reserve if elected as well.
Bitcoin ETFs Set to Overtake Gold Funds
Bitcoin exchange-traded funds (ETFs) in the United States also recently reached a big milestone on Nov. 21 by surpassing $100 billion in net assets for the first time, according to Bloomberg Intelligence. The momentum accelerated after President-elect Donald Trump’s crypto-friendly election victory on Nov. 5, which sparked optimism for the future of Bitcoin.
November alone saw a boost of more than $5 billion in inflows into BTC ETFs, according to Bryan Armour of Morningstar. Collectively, BTC ETFs now manage approximately $104 billion in assets, closing in on the $120 billion managed by gold ETFs. Bloomberg’s Eric Balchunas pointed out that Bitcoin ETFs are on track to surpass gold ETFs and are 97% of the way to becoming the largest Bitcoin holder globally.
BlackRock’s iShares Bitcoin Trust (IBIT) leads the market, and accumulated $30 billion in net inflows since its launch, while Fidelity’s Wise Origin Bitcoin Fund has seen more than $11 billion in inflows this year. The crypto market also experienced impressive growth as Bitcoin saw a 120% increase since the start of 2024.
After Trump’s election victory, IBIT experienced record-breaking volume on Nov. 6, which was its highest trading volume day. On Nov. 7, the fund brought in $1.1 billion in inflows, reversing two days of outflows. Analysts predict Bitcoin could reach between $100,000 and $150,000, which is also fueling interest in BTC ETFs.
Charles Schwab Eyes Spot Crypto Trading
Considering Bitcoin’s stellar performance in November, it is no wonder that more people want to get in on crypto. Rick Wurster, the incoming CEO of Charles Schwab, recently revealed the firm’s intentions to offer spot crypto trading once regulatory conditions in the United States improve.
Speaking on Bloomberg Radio, Wurster admitted that he has not personally invested in crypto yet, and joked that he now feels “silly” for not doing so. Despite his personal stance on the matter, he explained that Schwab’s main commitment lies in supporting its clients’ interest in digital assets during the heightened optimism about upcoming regulatory changes that could make direct crypto offerings possible.
Schwab clients have already been active in the crypto space through products like ETFs and futures, which have performed well. Wurster did, however, acknowledge that the firm faces stiff competition from already established players like Fidelity and newer platforms like Robinhood and Webull. While crypto is a priority, Wurster is also excited for artificial intelligence, which he said is revolutionizing the wealth-management business by drastically reducing response times for client inquiries.
Charles Schwab has been closely monitoring investor interest in crypto. An October survey revealed that digital assets ranked as the second most sought-after asset class among ETF investors, outranking fixed-income products.
Source: Charles Schwabb
Wurster is set to take over as CEO on Jan. 1, and will replace Walt Bettinger. He sees technology and crypto as integral to Schwab’s future strategy, and believes the firm is more than ready to adapt to client demand and regulatory opportunities.
