This week in crypto, Bitcoin activity held centre stage, with a much-anticipated new all-time high (ATH) just out of reach. Despite coming close, Bitcoin’s price closed just below its highest price formed earlier this year in March, leaving traders and investors both optimistic and cautious as November begins. While the month started with some scepticism, Bitcoin closed Uptober on a high note, showing solid gains for the month but falling a few percent short of a new ATH.

One of the major stories this week is the massive inflow into BlackRock’s spot Bitcoin ETF, which reached an impressive $875 million USD in a single day on October 30. BlackRock’s ETF has broken through $30 billion USD, and US ETFs collectively are nearing holdings of 1 million BTC. The growth in ETF activity signals continued institutional demand, and BlackRock’s recent trading volume marks its biggest day in six months, reinforcing confidence among investors about Bitcoin’s long-term outlook. The uptick in spot Bitcoin ETF demand suggests that institutional appetite for Bitcoin remains strong, even as retail interest in Bitcoin’s latest price rally appears muted.

Adding to the bullish sentiment is MicroStrategy’s new “21/21” plan, which aims to raise $42 billion USD to purchase more Bitcoin. This ambitious strategy aligns with founder Michael Saylor’s ongoing commitment to Bitcoin as a key asset. Meanwhile, other major investors and analysts, including Bitwise CIO Matt Hougan, have weighed in, suggesting that Bitcoin could reach $200,000 USD without a US dollar collapse, dispelling the notion that Bitcoin’s future price depends on extreme economic disruption.

In addition to these major moves, the Bitcoin Policy Institute recently released a report titled The Case for Bitcoin as a Reserve Asset, making the case for Bitcoin’s adoption by central banks. The report argues that Bitcoin could serve as a hedge against inflation, geopolitical instability, and even sanctions, highlighting the role Bitcoin could play as a “reserve asset” for central banks looking to diversify from traditional reserves.

However, Bitcoin’s quiet retail interest is noticeable, with many everyday investors yet to engage in the current rally. Historically, retail FOMO (fear of missing out) has driven Bitcoin’s largest gains, leaving some to speculate whether this wave of institutional demand alone will be enough to propel Bitcoin past previous ATHs.

Adding a global dimension to the news, Bhutan recently sold $66 million USD worth of its Bitcoin holdings on Binance, possibly to realise gains as Bitcoin approached $71,000 USD. While Bhutan still retains significant Bitcoin reserves, this sale suggests that even government-held Bitcoin could influence the market. The broader macroeconomic landscape, including next week’s US presidential election, could add more fuel to Bitcoin’s price movement, with some speculating that a political shift could impact regulatory views on digital assets.

With Uptober now behind us, all eyes are on November’s performance, as many in the crypto community anticipate a “breakout” month to close out the year. If institutional and retail demand continue to align with strong technical support levels, Bitcoin’s next move could be one to watch as 2024 draws to a close.

More news stories circulating the block: 

• Tether reports $2.5B profit in Q3, totalling $7.7B for 2024

• Reddit liquidates the majority of its Bitcoin and Ethereum

• Canary Capital submits filing for a spot Solana ETF

• Solana reaches its highest price in three months

• Riot reports a 65% increase in revenue from the previous year

• Base blockchain vulnerability results in a $1M theft

• Immutable commits to challenging an SEC notice over securities law claims

• VanEck makes an investment in Web3 gaming company Gunzilla