Will Bitcoin hit $100,000 if Trump wins? Investors are betting big on crypto ETFs as Trump’s potential return to the White House drives Bitcoin’s surge and market optimism.
US Elections Impact
Donald Trump’s pro-cryptocurrency stance has significantly influenced market sentiment in recent weeks. Additionally, the Republican frontrunner’s potential return to the White House has sparked optimism among crypto investors. Consequently, prediction markets like Polymarket have reported over $2.39 billion in election-related wagers, highlighting intense investor interest.
Crypto ETF
Cryptocurrency ETFs revolutionised digital asset investing by allowing investors to gain crypto exposure through traditional stock exchanges. These funds work by having investment companies purchase and store actual cryptocurrencies, then issuing shares that track their value, which investors can trade like regular stocks.
Following the SEC’s historic approval in January 2024, major firms like BlackRock and Fidelity launched Bitcoin ETFs, attracting billions in investments. This approach eliminates the need for digital wallets or direct crypto ownership while offering benefits of professional management, enhanced liquidity, and institutional oversight.
BlackRock’s iShares Bitcoin Trust ETF Performance
BlackRock’s flagship crypto fund has emerged as a clear market leader during this period of political speculation. Specifically, the iShares Bitcoin Trust ETF attracted $872 million in a single day. Subsequently, this achievement represents the fund’s most successful day since its January launch.
Crypto ETFs See Record Inflows
In a remarkable turn of events, Bitcoin-tracking ETFs witnessed unprecedented growth, with net inflows reaching $917.2 million last Wednesday. Moreover, this surge marks the highest single-day increase since March 2024. Furthermore, investors are actively positioning themselves for potential market shifts ahead of the upcoming US presidential election.
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Investor Sentiments
Market participants are increasingly betting on favourable crypto legislation under a potential Republican administration. Meanwhile, large-scale traders, including French investor Théo, have placed substantial bets exceeding $30 million on a Trump victory. Notably, these investment decisions appear driven by financial opportunities rather than political preferences.
Market Volatility Expectations
According to Deribit’s data, traders should prepare for daily Bitcoin price fluctuations of approximately 3.7% during election week. Subsequently, the cryptocurrency derivatives market has reached a record-breaking $43.61 billion in open interest. Nevertheless, market experts anticipate that this volatility will stabilise after the election results.
Legislative Outlook
A Republican victory could pave the way for crypto-friendly legislation in Congress. In fact, Bitcoin’s 12% price increase in October reflects growing confidence in positive regulatory changes. Therefore, investors are positioning themselves early for potential market gains following the election.
Long-term Outlook
Despite short-term election-related turbulence, market indicators point toward sustained growth in the crypto sector. Particularly, institutional investors continue to show strong interest through ETF investments. As a result, many analysts predict favourable conditions for Bitcoin’s value appreciation post-election.
The convergence of political events and crypto market dynamics has created unique investment opportunities. Therefore, investors must carefully navigate these waters while considering both political and market factors. Indeed, the outcome of the 2024 presidential election could significantly impact the future of cryptocurrency regulation and adoption in the United States.
Written By Fazal Ul Vahab C H
Disclaimer
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