Bitcoin trading volumes hit $70B as price nears $100K
The "Bitcoin Industrial Complex," encompassing U.S. spot Bitcoin (CRYPTO:BTC) exchange-traded funds (ETFs) and stocks like MicroStrategy (MSTR) and Coinbase (COIN), reached a record $70 billion in trading volume on November 21.
This milestone coincided with Bitcoin climbing to a new all-time high of $98,311, according to CoinGecko.
Bloomberg ETF analyst Eric Balchunas highlighted the unprecedented trading activity, dubbing it “BITSANITY.”
The volume shattered the previous $55 billion record set just a day earlier.
MicroStrategy led trading activity, accounting for a significant portion of the volume.
MSTR's shares dropped over 25% from their high of $536.70, closing at $397.28.
Meanwhile, Bitcoin has slightly retraced to $98,075 but remains less than 2% away from the $100,000 threshold.
The surge in Bitcoin's price and trading volumes aligns with the rapid adoption of U.S. spot Bitcoin ETFs, which surpassed $100 billion in assets under management on the same day.
Combined inflows into Bitcoin ETFs have reached $29.3 billion since their launch in January, offsetting significant outflows of over $20.2 billion from the Grayscale Bitcoin Trust (GBTC).
BlackRock’s iShares Bitcoin Trust (IBIT) leads the Bitcoin ETF market with $30.2 billion in inflows, followed by Fidelity's Wise Origin Bitcoin Fund (FBTC) at $11.2 billion and ARK 21Shares Bitcoin ETF at $2.7 billion.
The launch of options contracts on IBIT on November 20 added nearly $2 billion in exposure, further boosting trading volumes.
Balchunas noted that Bitcoin ETFs are now 82% as large as U.S.-traded gold ETFs, which have dominated markets since 2004.
At the time of reporting, the Bitcoin price was $98,895.63.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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