Spot Bitcoin exchange-traded funds (ETFs) saw a massive inflow of $1.38 billion on November 7. This is the largest single-day inflow since these products launched in January.
The surge followed Donald Trump’s victory in the U.S. presidential election, fueling speculation that investors view his win as a positive sign for the cryptocurrency market.
BlackRock Leads Bitcoin ETF Inflows
Data from SoSo Value shows that Bitcoin ETFs experienced net inflows of $621.90 million on November 6. However, the record-breaking inflows came a day later, led by asset management giant BlackRock. According to Farside Investors, BlackRock accounted for $1.11 billion of the inflows on November 7. Bitwise’s Bitcoin ETF (BITB) followed with an impressive $190 million inflow, while other issuers saw smaller increases.
Matt Hougan, Chief Investment Officer at Bitwise, commented on the influx, saying it reflects investor optimism for a more crypto-friendly regulatory climate under the new administration. The demand suggests a growing belief in the potential of Bitcoin ETFs under a Trump presidency.
Bitcoin Reaches New All-Time High
Bitcoin’s price responded positively to the ETF inflows and Trump’s election win, hitting a new all-time high of $76,943. It has since settled slightly to $75,915 at the time of writing. The Federal Reserve’s recent interest rate cut of 25 basis points may also have contributed to Bitcoin’s upward momentum.
Analysts are now forecasting that Bitcoin could break the $100,000 mark. The Pi Cycle Top indicator, using Glassnode data, projects an even higher target of $117,496.
BTC Price Prediction: Heading Towards $80,000?
Bitcoin is currently trading in an ascending channel, a bullish price pattern characterized by higher highs and higher lows. If this pattern holds, Bitcoin could soon rally to $80,066. However, sustained support from spot Bitcoin ETF inflows is crucial to maintain this bullish momentum.
If inflows continue, the prediction may be realized. But if the rally falters and Bitcoin falls back to $71,484, the bullish outlook could be invalidated, potentially driving the price down to $66,650.
Final Thoughts
The record inflows into spot Bitcoin ETFs signal strong investor confidence. With positive regulatory sentiment and increased market demand, Bitcoin appears poised for further gains. However, investors should keep an eye on ETF inflow trends, as they may dictate Bitcoin’s price trajectory in the coming weeks.
