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Since Donald Trump became president-elect a little over a month ago, approximately $10 billion has flooded into US bitcoin spot. ETFsshowing growing optimism that his administration will support the cryptocurrency industry.
<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-12-09/us-bitcoin–btc-etf-inflows-near-10-billion-since-trump-election-win” target=”_blank” rel=”nofollow”>According According to Bloomberg, a dozen funds from large issuers, including BlackRock and Fidelity Investments, have received around $9.9 billion in net inflows into their various bitcoin ETFs since Nov. 5, bringing their total assets to around $113,000. million dollars.
Trump Appointments Signal Shift Towards Pro-crypto Regulation
Trump's recent selections, as a champion of digital assets for<a target="_blank" href="https://bitcoinist.com/trump-paul-atkins-as-sec-leader-crypto-policies/” target=”_blank” rel=”nofollow”> lead The US Securities and Exchange Commission (SEC) and the creation of a White House czar for artificial intelligence and cryptocurrencies indicate a shift towards a friendlier regulatory climate.
In particular, Trump has praised the concept of establishing a national bitcoin reserve, which is gaining bipartisan support in Congress, with <a target="_blank" href="https://bitcoinist.com/strategic-bitcoin-reserve-legislation-10-us-states/” target=”_blank” rel=”nofollow”>Pro-crypto Senator Cynthia Lummis in the lead.
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bitcoin recently surpassed the $100,000 mark for the first time on December 5, trading at around $96,898 on Monday. Cryptocurrency's six-week winning streak is longest since 2021 market frenzybut analysts remain concerned about volatility.
David Lawant, head of research at leading cryptocurrency broker FalconX, noted that a sustained push above the $100,000 milestone will likely need other positive catalysts as btc has struggled to regain this level while stabilizing after the last four advances. days.
bitcoin rally boosts MicroStrategy and its peers
Bloomberg too <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-12-09/firms-ride-bitcoin-wave-to-raise-billions-from-convertible-debt” target=”_blank” rel=”nofollow”>grades That the positive atmosphere surrounding cryptocurrencies has resulted in a substantial rally among companies that have followed MicroStrategy's strategy of selling convertible bonds to finance bitcoin purchases.
MicroStrategy alone sold $6.2 billion in convertibles this year and aims to raise an additional $21 billion through fixed income offerings. Other companies, including MARA Holdings and Core Scientific, have successfully raised significant funding to support their bitcoin acquisitions.
MicroStrategy stockMSTR, has risen 73% since Donald Trump's election, while MARA, Riot Platforms and Core Scientific shares have risen 63%, 33% and 30%, respectively.
This trend closely resembles bitcoin's nearly 40% growth over the same period. With a market capitalization approaching $2 trillion, bitcoin's recent rise has dramatically increased MicroStrategy's assets, which are now worth more than $41 billion.
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The terms of the recent ones related to cryptocurrencies. convertible offers stand out, particularly because many are structured with zero coupons, allowing investors to engage in convertible arbitrage.
Despite the high demand for these instruments, there appears to be little anxiety about potential bitcoin price drops. Raj Imteaz, head of equity and convertible derivatives advisory at ICR Capital LLC, said the market's largest players feel compelled to issue convertibles to remain competitive.
“If your competitor has a large war chest funded by very low coupons and you haven't tapped the market, you are at a competitive disadvantage,” he said. “You almost have to issue converts to remain competitive within cryptocurrencies.”
Featured image of DALL-E, chart from TradingView.com
