On November 8, news emerged that Singapore's crypto investment firm QCP Capital stated that yesterday, Bitcoin spot ETF saw a net inflow of $1.38 billion, setting a new historical high. Coupled with the optimism brought by Trump's victory and the widespread expectation of a 25 basis point rate cut by the Federal Reserve, Bitcoin's price surged to $77,000 earlier this morning. However, investors began to withdraw some of the 'Trump trades': the dollar has given back most of its post-election gains, and Treasury yields have also returned to recent volatility ranges after a brief significant fluctuation. As the market considers Trump's proposal to impose a 60% tariff on China and rising Treasury issues, it is expected that Bitcoin's risk premium relative to stocks will decrease, which may allow it to potentially outperform other risk assets. The continued bullish sentiment for Bitcoin may also create a feedback loop, where increased ETF inflows drive up Bitcoin prices, and the rise in Bitcoin prices, along with decreased volatility, attracts more retail capital and systemic funds to buy in.

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