Week. 44 - Market update

As you have likely noticed, the market is currently experiencing a period of intense activity. Here is an overview of the most significant events:

1. Current Bitcoin Price
   As of October 30 at 11:30 AM, Bitcoin is trading at USD 72,514, reflecting an 8.5% increase over the past week. Strong indicators suggest that the price may continue to rise in the fourth quarter, although high volatility is expected.

   
   

2. Institutional Inflows into U.S. BTC ETFs
A driving factor behind the price development is the significant institutional inflows into U.S. BTC ETFs. Just yesterday, we saw inflows of an impressive USD 870 million. Since the beginning of the year, these funds have experienced net inflows of over USD 23 billion. Since these ETFs, like our ETPs, are physically backed, this translates to direct purchases of Bitcoin on global crypto exchanges.

3. Effects of the Bitcoin Halving
Another key factor is the effects of the Bitcoin halving that took place in April. As you know, this means the rate at which new Bitcoin is created is halved every four years. Following this year's halving, 3.125 new Bitcoin are now generated every four minutes. Historically, we have seen strong positive price developments in the fourth quarter of halving years, and this year's trend so far follows the same pattern.

4. Impact of the U.S. Presidential Election
The current U.S. presidential election also has significance. Both candidates have expressed positive interest in focusing more on crypto assets and Blockchain technology. Donald Trump has outlined plans for a national Bitcoin reserve, while Kamala Harris has emphasized that both crypto assets and Blockchain technology will be central to her administration.

5. Growth in the Futures Market
Open interest in the futures market has increased from approximately USD 18 billion on January 1 to USD 43.5 billion as of yesterday. This typically indicates a long-term positive outlook on the asset, though it may also lead to increased short-term volatility.

6. U.S. Macroeconomic Data
This week, U.S. macroeconomic data, including third-quarter GDP figures, unemployment rates, and PCE (the Federal Reserve's preferred inflation measure), is likely to affect both volatility and price development.