Bitcoin is flirting with the $77,000 mark, as Donald Trump’s victory inspired a new wave of bullish inflows into Bitcoin-related products, driven by expectations of improving economic policy in the United States.
The Bitcoin (BTC) price nearly broke above $77,000 on Nov. 8, two days after Trump was declared the winner of the US election, inspiring a new wave of investor appetite for risk-on assets.
According to a Nov. 8 research note from trading firm QCP Capital, investor optimism around a Republican presidential win could push Bitcoin past $77,000. QCP wrote:
“Unprecedented net inflows of $1.38 billion into BTC spot ETFs yesterday, coupled with optimism from Trump’s victory and a widely anticipated 25 bps Fed cut, have propelled BTC to $77,000 early this morning.”
Bitcoin rose to an all-time high of $76,999 at 8:15 pm UTC on Nov. 7, Cointelegraph data shows.
BTC/USD 15-minute chart. Source: Cointelegraph
Continued inflows into spot Bitcoin exchange-traded funds (ETFs) could push BTC to a new all-time high, according to historical patterns observed in previous bull markets following Bitcoin’s halving events. The post-halving bull market is expected to last through the third quarter of 2025.
Bitget Research’s chief analyst, Ryan Lee, expects Bitcoin to breach $100,000 before the end of 2024.
Bitcoin to overtake other risk assets on China tariff fears?
Bitcoin could outperform other risk-on assets like gold and traditional equities.
This is partly because of Trump’s expected 60% tariff on China, according to QCP’s research note, which explained:
“As markets consider Trump’s proposed 60% tariff on China and fiscal concerns like the rising national debt, we expect BTC to carry less risk premium compared to equities, potentially positioning it to outperform other risk-on assets.”
Trump has proposed a 60% tariff on Chinese imports, a significant increase from the 7.5% to 25% rates during his first term.
Record inflows for Bitcoin ETFs post-election
Spot Bitcoin ETF inflows recorded a new all-time high in net inflows on the day after Trump’s victory.
The US spot Bitcoin ETFs saw over $1.37 billion worth of cumulative net inflows on Nov. 7, Farside Investors data shows.
Bitcoin ETF Flow (USD, million). Source: Farside Investors
The post-election investor optimism could lead to increasingly more spot and ETF buying, according to QCP Capital, which noted:
“This sustained bullishness in BTC could also create a feedback loop, with rising ETF inflows boosting BTC prices, which, in turn, attracts more retail capital and systematic fund buying as volatility declines.”
Improving risk asset appetite could also propel the Ether (ETH) price to a breakout above $3,200 in the short term, partly driven by positive Ether ETF inflows, analysts told Cointelegraph.
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