Following Donald Trump's election victory, Bitcoin spot ETFs recorded $622 million in inflows on Nov. 6 amid expectations for a more crypto-friendly environment under the new administration.
What Happened: The Fidelity ETF FBTC led with $309 million, while Bitcoin spot ETFs overall recorded a daily turnover of $6.07 billion—the highest since March, according to data from SoSo Value.
BlackRock's ETF IBIT contributed significantly, reaching a record turnover of $4.14 billion, a record high.
These inflows come on the heels of Bitcoin's new all-time high of $76,243 late on Nov. 6, though it has since retraced to $74,900 as of Thursday morning, still trading up by about 1.2%, according to CoinGecko data.
Meanwhile, Ether ETH/USD is also showing gains, trading at $2,810 on Thursday morning in Europe—an increase of over 7%. However, it remains 42.2% below its all-time high from November 2021.
Ethereum spot ETFs had a total net inflow of $52.2884 million.
In a note to Benzinga, Katie Stockton, Chief Technical Analyst at Fair Lead Strategies, highlighted Bitcoin's BTC/USD upward momentum, with a potential breakout from its long-standing downtrend channel.
"Bitcoin is up about 7% today in response to Trump's victory," Stockton noted, adding that a weekly close above ~$67,000 would confirm the breakout. "A decisive breakout would act as a positive intermediate-term catalyst supported by the weekly MACD," she added, suggesting a long-term target of approximately $80,600.
Also Read: Bitcoin’s Future Under President-Elect Donald Trump: A Look At His Crypto Policies
Why It Matters: Market attention now turns to the Federal Reserve's upcoming rate decision, with nearly a 100% probability of a rate cut, according to CEX.IO's Lead Analyst, Illia Otychenko.
He emphasized that "the Fed’s move is likely priced in," though Fed Chair Jerome Powell's comments may hold more influence given recent economic data showing weakened job growth.
Otychenko also pointed to possible inflationary pressures from Trump's proposed policies, which may impact the Fed's monetary easing trajectory.
"If substantial tariff increases are announced, it could restrict the Fed's rate-cutting path," he added.
Bitcoin's price surge, while setting new records, shows signs of slowing momentum.
"The conquest of higher levels is accompanied by weakening volume momentum," Otychenko explained, indicating potential consolidation if volume does not improve.
Analysts note supply zones between $71,700 and $72,700 if Bitcoin falls below $74,000, with $73,200 acting as a potential support level.
What’s Next: As the crypto market continues to evolve under shifting economic and political conditions, these trends will be a focal point at Benzinga's Future of Digital Assets event on Nov. 19.
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