Bitcoin has recently reached an all-time high (ATH) of $99,595, fueling optimism that the $100,000 mark is within reach. However, volatility has kept Bitcoin from breaching this psychological barrier. 

Despite this, Bitcoin ETFs have seen record inflows, suggesting that a push toward $100,000 is imminent, with institutional support playing a crucial role.

Bitcoin ETFs Are Driving the Rally

In November, Bitcoin ETFs recorded $6.1 billion in inflows, the highest monthly influx since the launch of spot Bitcoin ETFs in January. This surge indicates that investors are becoming more comfortable with the asset, preferring the security of regulated ETFs over direct Bitcoin purchases. With growing institutional interest, it’s likely that this trend will continue into December, potentially propelling Bitcoin to new heights.

The significant inflows show that many investors are flocking to Bitcoin ETFs as a safer way to gain exposure to the cryptocurrency. As more institutional money flows into the market, Bitcoin could see increased stability, boosting confidence in its long-term prospects. This positive market sentiment could set the stage for another rally as the year ends.

Analyst Rekt Capital placed the target for Bitcoin at $100,068 as the crypto king continues to show signs of impending rise. The analyst noted that BTC just completed a retest of the lower high and will likely aim for consolidation.

“[BTC] Needs to Daily Close back inside the Bull Flag to ensure that price won’t go for another retest and instead will resynchronise with Bull Flag consolidation,” Rekt Capital stated.

BTC Price Prediction: More Highs Ahead

Bitcoin is currently trading at $94,940, with support forming around this range. The critical support level for BTC is at $89,800, and a drop to this level is unlikely, given the current bullish momentum. If Bitcoin can sustain this support, it’s poised for further price increases in the coming weeks.

If the bullish momentum continues to gain strength, Bitcoin could break the $100,000 barrier, setting a new ATH. This level has long been viewed as a psychological milestone, and breaching it would mark a significant achievement in Bitcoin’s price history. The influx of ETF investments could be the catalyst needed to drive Bitcoin past this threshold.

However, if Bitcoin fails to push past $100,000 and begins to lose momentum, a decline is likely. A failure to maintain the upward trend could lead to a price pullback, bringing Bitcoin closer to the $89,800 support. This would also potentially invalidate the bullish outlook.

According to on-chain data, BlackRock’s iShares Bitcoin Trust (IBIT) now holds over 500,000 BTC. This positions BlackRock as the third-largest Bitcoin holder globally, trailing only Bitcoin’s pseudonymous creator, Satoshi Nakamoto, and crypto exchange giant Binance.

With holdings worth approximately $48 billion, BlackRock’s influence in the crypto market is expanding fast.

BlackRock’s Aggressive Bitcoin Accumulation

In just 233 trading days since the launch of IBIT, BlackRock has acquired 2.38% of all Bitcoin that will ever exist. This traction reflects its confidence in Bitcoin as a financial asset. Its series of purchases reflects this momentum, with total BlackRock Bitcoin holdings reaching 500,380 units as of Monday, December 2.

Recently, the firm made headlines with a $680 million Bitcoin buying spree amid a cumulative effort. The purchases continue to solidify its foothold in the market. BlackRock’s pivot toward Bitcoin aligns with CEO Larry Fink’s changing perspective. Once a skeptic who dismissed Bitcoin as speculative, Fink now describes it as an “independent asset” with transformative potential.  

This shift has driven BlackRock’s deepening involvement in crypto markets. The firm’s US Head of Thematics and Active ETFs, Jay Jacobs, recently said Bitcoin could become a $30 trillion market. As BeInCrypto reported, he cited more room for BTC adoption.

BlackRock’s flagship product, the iShares Bitcoin Trust (IBIT), is a central component of its Bitcoin accumulation strategy. IBIT reached $40 billion in AUM (assets under management) earlier this year, shattering speed records in the ETF industry. On its first day of options trading alone, the fund recorded sales exceeding $425 million, signaling immense interest from institutional investors.

Four weeks ago, IBIT surpassed the performance of BlacRock’s gold ETF, evidence of Bitcoin’s rising prominence in traditional finance (TradFi). According to data on SoSoValue, IBIT continues to lead the charge in the Bitcoin spot ETF market.

The financial instrument recorded inflows nearing $340 million on Monday. Its cumulative net inflow was $32.08 billion as of December 2, with Fidelity’s FBTC trailing at $11.48 billion.

BTC Institutional Adoption Stirs Decentralization Concerns

BlackRock’s Bitcoin strategy extends beyond ETFs. The firm has also increased its exposure to Bitcoin through investments in MicroStrategy, the largest corporate holder of Bitcoin. This move reflects BlackRock’s confidence in Bitcoin’s long-term value proposition and its intent to dominate the institutional Bitcoin market.

The firm’s initiatives, among those of other TradFi players, have undeniably legitimized Bitcoin as an asset class. However, not all are celebrating.

Critics within the crypto community argue that institutional dominance contradicts Bitcoin’s founding ethos of decentralization. With BlackRock amassing such significant holdings, the firm risks centralizing control in a space that was designed to empower individuals over institutions.

 “There once was a dream that was Bitcoin… this is not it,” one user on X lamented.

To some critics, the growing institutional acquisition of Bitcoin defeats the whole purpose of decentralization, with the likes of BlackRock steadily edging to become the biggest hodlers.

Nevertheless, BlackRock’s rise as a major Bitcoin holder marks a pivotal shift in the cryptocurrency playing field. On one hand, it highlights Bitcoin’s mainstream acceptance and potential as a global financial asset. On the other, it raises questions about the role of large financial institutions in a space traditionally associated with grassroots financial sovereignty.

With IBIT leading the charge and setting benchmarks, the firm is poised to remain a key player in the crypto industry. However, the debate over whether this benefits or undermines Bitcoin’s foundational principles is unlikely to subside.

Binance founder Changpeng Zhao (CZ) hinted at a potential altcoin rally in a cryptic post on X (formerly Twitter). CZ posed the question, “Which key is available on Windows and Linux, but not on Mac?”

While the question appears innocuous, the crypto community has interpreted it as a veiled reference to an altcoin season or AltLayer (ALT).

Altcoin Season Index Surges

The timing of CZ’s post is noteworthy, as the Altcoin Season Index currently reads 78, signaling a strong market inclination toward altcoins. This index suggests that cryptocurrencies other than Bitcoin are experiencing heightened interest and momentum, with increased trading activity and price gains.

Despite the hype, leading crypto analysts urge caution, emphasizing the volatile and unpredictable nature of altcoin seasons. Sheldon the Sniper, a prominent trader, warns of a swift and brutal market correction. He advises investors to prepare limit orders to secure their trades.

“The alt flush is going to be fast and ugly. Have your limit orders ready; it won’t last long,” he said on X.

Echoing this sentiment, Miles Deutscher stressed the importance of strategic investing during a bull market. He advised against chasing fleeting trends, urging traders to focus on assets with strong narratives and fundamentals.

“Over-trading is your enemy in a bull market. Buy quality stuff you like on dips, hold it, and take profits on rips,” Deutscher tweeted, highlighting the perils of over-complicating trading strategies.

Meanwhile, Ki Young Ju, CEO of CryptoQuant, provided a broader perspective, predicting a challenging and unconventional altcoin season. He noted that Bitcoin’s growing detachment from the broader crypto ecosystem could make traditional correlations between BTC and altcoins obsolete.

Based on his analysis, only a select few altcoins might thrive, with the CryptoQuant executive advising investors to focus on projects capable of bridging the gap between Bitcoin and altcoin ecosystems.

“This alt season won’t be what you expected. It is going to be weird and challenging. Market sentiment is good, but there isn’t much fresh liquidity,” he noted.

The remarks come shortly after he analyzes the reasons behind the altcoin’s season delay, as BeInCrypto reported.

AltLayer Steals the Spotlight

Elsewhere, the immediate market response to CZ’s post has thrown AltLayer into the limelight. As excitement builds, some investors speculate that CZ’s post points directly to AltLayer. The network’s ALT token is up nearly 20% to trade for $0.1821 as of this writing.

 “ALT token surged by more than 15% after CZ’s tweet. The Altseason has begun,” Bitcoin enthusiast Crypto Aman noted.

Of note is that Binance Labs invests in AltLayer, the 45th Binance Launchpool initiative. AltLayer offers a Rollups-as-a-Service (RaaS) platform, catering to Layer-2 (L2) protocol projects — a feature aligned with currently trending crypto narratives.

As a Binance-backed project, AltLayer’s association with novel L2 solutions adds to its appeal. The platform’s focus on providing scalable and customizable rollup solutions aligns well with current trends. This makes it a prime candidate for attention during this altcoin season.

While CZ’s cryptic comment stirred excitement, it also reflects the power of influential figures in shaping market sentiment. However, as history has shown, speculation-driven rallies can be short-lived, making it crucial for investors to remain vigilant.

Altcoin seasons are often characterized by heightened volatility, creating opportunities and risks in equal measure. For traders, the key lies in disciplined strategies and a focus on long-term value rather than short-term gains.

It remains to be seen whether this season delivers the promised gains or fizzles out in a wave of corrections. Nevertheless, strategic, informed decision-making will be crucial to waiving the excitement and pitfalls of the current market phase.