PANews reported on November 8 that Singapore's crypto investment institution QCP Capital published a statement saying that yesterday, Bitcoin spot ETFs had a net inflow of US$1.38 billion, a record high. Coupled with the optimism brought about by Trump's victory and the widespread expectation of a 25 basis point interest rate cut by the Federal Reserve, the price of Bitcoin rose to US$77,000 earlier this morning.
However, investors are beginning to unwind some of the “Trump trade”: the dollar has given up most of its post-election gains, and Treasury yields have also fallen back into recent ranges after a brief surge. As markets consider fiscal issues such as Trump’s plan to impose a 60% tariff on China and rising national debt, Bitcoin’s risk premium relative to stocks is expected to decrease, which could put it on track to outperform other risk assets.
Continued bullish sentiment in Bitcoin could also create a feedback loop, where increased ETF inflows push up Bitcoin prices, which in turn attract more retail capital and systematic fund buying as volatility declines.
