Author: 636Marx
First, the author directly states the conclusion.
Bit has evolved from a niche market to an important participant in the global financial system. Governments and institutions around the world, except the United States, are closely monitoring the situation. The UK will launch new regulations for the domestic crypto industry this month, aiming to make the UK a global digital asset hub. These significant developments are in line with the recent record-breaking inflows of Bit ETF funds, suggesting that Bit may soon break through the $100,000 mark.
UK Drives Crypto Regulation
In recent months, the UK has adjusted its attitude towards the regulation of digital currencies. Historically, UK lawmakers have taken a cautious approach to digital assets, wary of risks such as fraud, money laundering, and market volatility. However, as other major economies such as the US and the EU take measures to attract crypto businesses, the UK government has taken a more decisive stance.
The UK Treasury is drafting regulations to provide clearer guidance for crypto businesses, particularly those involving stablecoins and staking. These regulations will clarify how stablecoins can be issued, managed, and used in the UK, in order to attract more operators to the UK market. The UK is also advancing the regulation of staking activities, providing regulatory transparency.
The UK's Financial Property Act recognizes digital assets such as digital currencies and Non-Fungible Tokens as personal property, by legally defining digital assets and protecting investors' rights and resolving ownership disputes. This recognition provides stronger legal protection for investors and greater accountability for digital asset trading companies, sending a signal to global crypto investors that the UK is committed to creating a safe environment for digital innovation.
Impact of US Digital Currency Policy
Trump's supportive remarks on digital currencies have resonated globally, and as speculation on potential policies favorable to digital assets increases, crypto investors' interest in the US market is also growing. Trump hinted at bold measures, such as designating Bit as a strategic reserve asset and eliminating capital gains tax on US-issued digital currencies.
Trump: "They have them paying tax on crypto and I don't think that's right. Bit is money and you have to pay capital gains tax if you use it to buy a coffee? I was talking with a friend he said 'it really shouldn't be taxed' and I agree. Maybe we get rid of taxes on crypto and replace it with tariffs."
If the US continues to relax its regulatory stance, countries like the UK will feel pressure to compete for digital currency talent, investors, and businesses. Trump's support for crypto has sparked a global "crypto race," with countries vying to create the most attractive regulatory environment. The UK's recent initiatives are partly a response to this anticipated shift, aimed at preventing businesses and investors from moving to the more crypto-friendly US policy environment.
Bit Spot ETFs See Terrifying Inflows
As the UK and US compete for dominance in the digital currency space, traditional financial institutions' interest in Bit has soared to record levels. The latest data shows that Bit spot ETFs received an astonishing $510 million in inflows in a single trading day. BlackRock's IBIT Bit spot ETF led with $230 million, while Fidelity's FBTC Bit spot ETF contributed $186 million, for a total inflow of $29.15 billion.
These inflows indicate confidence in Bit as a long-term asset, and the launch of Bit spot ETFs allows institutions to invest in Bit without the need to manage actual digital currency holdings. For large investors who face various risks of directly holding Bit, these ETFs provide a simpler, regulated option.
The appeal of Bit ETFs lies in their transparency and convenience, offering risk exposure to institutions that wish to include Bit in their portfolios, without the need for specialized infrastructure or crypto custody knowledge. This convenience directly drives Bit to new highs.
ETH Begins to Follow Bit's Footsteps
The inflows into ETH ETFs have also seen similar growth, with ETH spot ETFs recording positive inflows for six consecutive days, adding around $147 million in the past few weeks. This strong data performance indicates that institutional investors are diversifying into other digital assets, with Fidelity's FETH ETH spot ETF attracting significant investment.
Why $100,000 is So Important
The author believes that historically, November is a strong performance month for Bit, with an average monthly return exceeding 44%. This year, Bit has already risen more than 20% in November, and if it rises another 14%, BTC will break through the long-term expected $100,000 mark.
In addition to historical trends, the continued interest rate cuts in the US and the reduced supply after the Bit halving event are also contributing to the bullish outlook. Lower interest rates typically make high-growth assets like Bit more attractive, as the opportunity cost of investing in traditional assets decreases.
Bit's recent price and trend have been constantly making headlines in various apps. This will mark Bit's acceptance by the general public and its transformation into a more efficient financial tool and a truly mature financial asset.
