Bitcoin Sees Record High Following Trump’s Election Victory
On Wednesday, the largest cryptocurrency by market value, Bitcoin (BTC), broke records as it climbed over 9% to hit a new high of $76,481. This significant surge comes in the wake of Donald Trump’s U.S. presidential election victory, who voiced support for the crypto industry during his campaign.
According to data from CoinDesk Indices, this is the fourth-best day of the year for Bitcoin, following its previous highs in February, March, and August. The cryptocurrency has shown remarkable resilience, with its price increasing by over 12% after the Aug. 5 yen carry trade unwind.
Trump’s Victory: A Boost to Crypto Industry?
The news of Trump’s election victory may have come as a surprise to some investors, but earlier research indicated that BTC could rise up to 11% on a Trump victory. This prediction has proven correct, with Bitcoin experiencing one of its most significant gains in recent history.
Record-Breaking Inflows into Spot-Listed ETFs
The rally in Bitcoin’s price was accompanied by massive inflows into spot-listed bitcoin exchange-traded funds (ETFs). These funds added a net $621.9 million, snapping a three-day streak of outflows. The total net inflows have now reached $24.2 billion.
Among notable performers, Grayscale’s Bitcoin Mini Trust (BTC) registered $108.8 million, its second-biggest day since the start of trading. Meanwhile, Bitwise Bitcoin ETF (BITB) saw a $100.9 million inflow, also one of its biggest net inflow days.
BlackRock’s iShares Bitcoin Trust: A Contrasting Performance
In contrast to the above-mentioned funds, BlackRock’s iShares Bitcoin Trust (IBIT) posted a second-straight day of net outflows, losing a total of $113.3 million over the period. However, trading volume in the ETF was at a record level, with Senior Bloomberg ETF analyst Eric Balchunas noting that ‘IBIT just had its biggest volume day ever with $4.1b traded.’
Trading Volume: A Record-Breaking Day for Bitcoin ETFs
The group of bitcoin ETFs saw a trading volume of over $6 billion, their best day since the early days of trading. As Balchunas observed, ‘Most of the ETFs did 2x their average. It was just an all-around banger day for an infant category that never ceases to amaze.’
To provide some historical context, ETF trade volume reached a peak of $9.9 billion during the March bull run, according to data from checkonchain. Total trade volume on Nov. 6 reached approximately $76 billion, comprising futures volume of $62 billion, spot volume of $8 billion, and ETF trade volume of $6 billion.
Bitcoin: Futures vs Spot vs ETF Trade Volume
While the trading volume in bitcoin ETFs has been impressive, it still accounts for a small percentage of the total trade volume. The following chart illustrates the trade volume distribution between futures, spot, and ETF markets.
| Market | Volume |
| — | — |
| Futures | $62 billion |
| Spot | $8 billion |
| ETF | $6 billion |
Ether: A Lagging Performer
In contrast to Bitcoin’s impressive performance, Ether (ETH) has been lagging behind. Net inflows into ether U.S. spot ETFs totaled $52.3 million, the most since Sept. 27, according to Farside data.
As of press time, Bitcoin is trading at just over $75,000, up 77% year-to-date, while Ether is trading at $2,822, up 20% year-to-date.
Conclusion
The record-breaking performance of Bitcoin on Wednesday has sent shockwaves through the crypto market. With its price surpassing $76,481, investors are left wondering if this gain is sustainable. However, earlier research and the significant inflows into spot-listed ETFs suggest that Bitcoin’s future looks bright. As the market continues to evolve, one thing is clear: Bitcoin has broken records once again, cementing its position as a leading player in the crypto industry.
Key Takeaways
- Bitcoin (BTC) surpassed $76,481 on Wednesday, marking a new record high.
- The largest cryptocurrency by market value climbed over 9% following Donald Trump’s U.S. presidential election victory.
- Net inflows into spot-listed bitcoin ETFs totaled $621.9 million, snapping a three-day streak of outflows.
- Grayscale’s Bitcoin Mini Trust (BTC) registered $108.8 million in net inflows, its second-biggest day since the start of trading.
- Bitwise Bitcoin ETF (BITB) saw a $100.9 million inflow, one of its biggest net inflow days.
