Bitfinex recently shared a market analysis report that highlights some big changes in the Bitcoin market. Last week, Bitcoin's price jumped to a new all-time high (ATH), trading above $97,000. This surge pushed its market cap to an impressive $1.8 trillion.
With this rise, Bitcoin has now surpassed silver, making it the eighth largest asset in the world by market capitalization.
This new ATH followed a remarkable 39.5% increase in just nine days. That's the largest nine-day gain we've seen since January 2021. This rally marks one of the most significant short-term capital inflows into any asset class in history. It shows that investor interest in Bitcoin is growing, reaching levels typically seen with mainstream assets.
In the U.S., Bitcoin exchange-traded funds (ETFs) have gathered $84 billion in assets under management. This accounts for 66% of the total assets in gold ETFs. While investor excitement has cooled a bit—with around $640 million in net outflows over the last two trading days—Bitfinex remains optimistic about Bitcoin's long-term potential. Institutional investments are on the rise, and ETFs are gaining more market share. This suggests that Bitcoin's growth trajectory is set to continue, potentially impacting capital allocation strategies down the road.
These developments unfold against the backdrop of a resilient U.S. economy, which is facing some challenges, especially with inflation. In October, inflation went up, driven by higher shelter costs and used car prices. However, falling energy prices helped ease some of that pressure.
The labor market is still strong. We see low layoff rates and rising wages, which support consumer spending. Retail sales in October exceeded expectations, fueled by steady wage growth and increased household wealth. This indicates that economic momentum is still present.
However, proposed fiscal policies, like tariffs and increased government spending, raise concerns about potential inflationary effects. These factors complicate the Federal Reserve's ability to cut interest rates. As markets adjust to these changes, the outlook remains positive, but it requires careful navigation of the challenges ahead.