Bitcoin Hits New High of $89K as Spot ETFs Attracts Billions

2024-11-15 09:58:51 Primitive Reading

From financemagnates by Jared Kirui

The crypto market shows renewed momentum in 2024 after a challenging period marked by a historic new all-time high for Bitcoin and steady ownership rates across major markets. According to CoinMarketCap, the top cryptocurrency recently jumped to an all-time high of above $89,828.

Gemini’s latest Global State of Crypto report highlights key trends, including a promising rebound driven by spot bitcoin ETFs and resilient long-term investors who view digital assets as a hedge against inflation.

Top 100 Cryptocurrencies

Despite the volatility that slashed the combined value of the top 100 cryptocurrencies from $2.7 trillion in 2021 to $830 billion by late 2022, ownership rates in the US, UK, France, and Singapore have remained consistent. Around 21% of adults in the US and 18% in both the UK and France reported owning crypto. Notably, Singapore saw a slight dip in ownership from 30% to 26%.

65% of current crypto owners view their holdings as a long-term investment, while 38% use it as a hedge against inflation. Gemini’s report suggests that a majority of past owners (over 70%) are likely to re-enter the market soon, indicating optimism despite previous losses.

Meanwhile, the launch of spot Bitcoin ETFs in the US has been a key catalyst for the 2024 crypto market rally. This new investment vehicle has attracted billions in inflows, with Bitcoin reaching a new peak of $73,737.94 in March. Gemini’s survey revealed that 37% of US crypto owners now hold assets via ETFs, and 13% of these investors entered the market exclusively through ETFs.

The appeal of ETFs lies in their ability to provide exposure to Bitcoin’s price movements without the complexities of directly purchasing digital assets. This has opened the market to a wider audience, including institutional investors who were previously hesitant.

Regulatory Uncertainty

Despite positive signs, regulatory clarity remains a significant barrier to crypto adoption. The survey found that 38% of non-owners in the US and UK cited concerns over unclear regulations as a key reason for staying away from crypto investments.

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