According to PANews on November 8, Singaporean crypto investment firm QCP Capital stated that yesterday, Bitcoin spot ETF net inflows reached $1.38 billion, a record high. Along with the optimism brought by Trump's victory and widespread expectations of a 25 basis point rate cut by the Federal Reserve, this has driven Bitcoin prices up to $77,000 earlier this morning.
However, investors have begun to withdraw some of the 'Trump trade': the dollar has given back most of its post-election gains, and Treasury yields have also fallen back into recent volatility ranges after a brief period of significant fluctuations. As the market considers Trump's proposed 60% tariffs on China and rising Treasury issues, it is expected that the risk premium of Bitcoin relative to stocks will decrease, which may allow it to potentially outperform other risk assets.
The sustained bullish sentiment for Bitcoin may also create a feedback loop, where increased ETF inflows drive up Bitcoin prices, and the rise in Bitcoin prices, coupled with decreased volatility, attracts more retail capital and systemic fund buying.
