TechFlow news, November 19 — According to Bitcoin.com, this week cryptocurrencies took center stage, outperforming traditional assets. A report by Bitwise Europe attributes this rally to growing optimism around U.S. policy initiatives and the ongoing tightening of Bitcoin supply.
At the heart of the report is discussion surrounding a potential strategic Bitcoin reserve in the United States. Pennsylvania has already passed legislation supporting such a reserve, sparking speculation that other states may soon follow suit. Betting activity on Polymarket has amplified these expectations, with the probability of establishing a national Bitcoin reserve surging above 50% last week.
The report also delves into Bitcoin's supply constraints amid rising demand from ETFs and corporations. Inflows into U.S. spot Bitcoin ETFs have surged beyond overall Bitcoin supply growth, creating a supply-demand imbalance. This scarcity is reflected in Bitcoin’s liquidity and highly liquid supply indices, both of which have dropped to historic lows.
The trend is reinforced by increasing corporate adoption of Bitcoin as a reserve asset, with companies like MicroStrategy making large-scale Bitcoin purchases.
Researchers further explain that Bitcoin is not the only cryptocurrency benefiting from a clearer U.S. regulatory environment. Altcoins including XRP and meme coins such as DOGE have also made progress. The Department of Government Efficiency has taken a crypto-friendly stance, adding momentum to these assets—particularly DOGE.
However, Ethereum has not kept pace. This lag may be linked to capital flows favoring other cryptocurrencies. On the broader economic front, the U.S. October CPI data came in line with forecasts. Combined with other indicators, this strengthens expectations for a potential Fed rate cut in December, introducing another variable into the evolving crypto narrative.
