Retail Traders Push Bitcoin Toward Historic $100K Level

TLDR

• Bitcoin price nears $100,000 milestone, trading at $99,340 as of November 22, 2024
• Retail investors dominate BTC ownership with 88.07% of circulation, contrary to institutional narrative
• BlackRock’s BTC ETF options debut saw $1.9 billion in first-day trading volume
• US spot BTC ETFs recorded over $1 billion in net inflows, led by BlackRock’s IBIT ($600M)
• Total crypto market cap reaches record $3.4 trillion, with BTC comprising 56%

Bitcoin prices pushed toward the $100,000 mark on November 22, 2024, reaching $99,340 as retail investors continue to dominate ownership of the world’s largest cryptocurrency. The latest data shows individual investors hold 88.07% of all Bitcoin in circulation, challenging narratives about institutional takeover of the market.

The cryptocurrency market reached a record total capitalization of $3.4 trillion, with Bitcoin representing 56% of that value. This surge comes as U.S. spot Bitcoin ETFs recorded over $1 billion in net inflows, demonstrating growing mainstream acceptance of the digital asset.

BlackRock’s IBIT fund led the ETF charge with $600 million in purchases, while Fidelity’s FBTC attracted over $300 million in inflows. None of the eleven approved ETFs experienced outflows during this period, indicating steady institutional confidence in the asset class.

The historic debut of BlackRock’s Bitcoin ETF options marked another milestone, with $1.9 billion in notional value traded on its first day. This development opens new avenues for both institutional and retail participation in the Bitcoin market.

Contrasting with common market narratives, institutional investors hold just 10.68% of Bitcoin supply, while large-scale holders known as “whales” control only 1.26%. This distribution suggests Bitcoin remains true to its original vision as a democratized financial asset.

Breaking down the institutional holdings, funds and ETFs account for 1.09 million BTC, representing approximately 5.2% of the total supply. Government holdings, including those of the United States and China, amount to roughly 2.5% of all Bitcoin.

Major cryptocurrency exchanges like Coinbase maintain substantial Bitcoin reserves, holding more than 2.25 million BTC. However, these holdings primarily represent customer assets rather than proprietary positions.

The march toward $100,000 has not been without volatility. On November 21, Bitcoin prices briefly dipped to $95,756.24, with trading volume reaching $98.40 billion. These price swings highlight the continued influence of retail traders in driving market movements.

Future price expectations remain bullish, as evidenced by derivatives markets. Bitcoin futures contracts expiring in March, June, and September 2025 are all trading above $100,000 on the Deribit exchange. Call options at the $100,000 strike price now show an open interest exceeding $2 billion.

IBIT Options Trading Recap!

Today marks the historic Day 1 of BTC ETF options launch. It did not disappoint, with over $1.86Bn in notional traded! There were some notable takeaways in my opinion, so here is a quick thread on the Top 10 Most Interesting Observations I made 👇

— Jeff Park (@dgt10011) November 20, 2024

Other cryptocurrencies have benefited from Bitcoin’s upward momentum. Ethereum (ETH) gained 9% in 24 hours, while Solana’s SOL token reached new highs above $260. Cardano’s ADA rose 12%, and XRP led major tokens with a 25% increase.

The broader decentralized finance (DeFi) sector showed strength, with various indexes rising at least 8%. Even Ethereum-based meme coins like MOG and PEPE posted gains up to 27%, demonstrating the market-wide impact of Bitcoin’s rally.

News of potential changes in the regulatory landscape added to market optimism, with SEC Chair Gary Gensler announcing his planned departure in January. This development sparked rallies in tokens previously facing regulatory scrutiny.

Market observers point to several factors supporting Bitcoin’s price levels. QCP Capital traders noted strong demand alongside expectations of easier monetary policy from global central banks. Their trading desk reported aggressive buying of call options expiring in March and June, suggesting sustained bullish sentiment into 2025.

The untouched wallet of Bitcoin’s creator, Satoshi Nakamoto, containing 968,452 BTC, remains a testament to the cryptocurrency’s decentralized nature. This holdings structure, dominated by retail investors, continues to align with Bitcoin’s founding principles of financial democratization.