Bitcoin is boosted by U.S. Republican presidential candidate Trump’s victory, hitting a historic high, driving the overall cryptocurrency market up. According to Coinmarketcap data, the total market capitalization of cryptocurrencies currently reaches 2.54 trillion USD, with a single-day surge of over 200 billion USD.
At the same time, the net inflow of Bitcoin spot ETFs also performed strongly. Bloomberg senior ETF analyst Eric Balchunas pointed out that BlackRock's Bitcoin spot ETF IBIT achieved a trading volume of 1 billion USD within 20 minutes of opening on Wednesday, with a final single-day trading volume reaching 4.1 billion USD, setting a new high, surpassing the single-day trading volume of stocks such as Berkshire, Netflix, and Visa.
In addition, IBIT increased by 10% on that day, marking its second-best trading day since listing. Eric Balchunas expects that part of this trading volume will convert into fund inflows, which may be accounted for on Tuesday and Wednesday evenings.
Meanwhile, Eric Balchunas shared data that the total trading volume of all Bitcoin spot ETFs reached 6 billion USD on Wednesday. From historical data, this set a new single-day trading volume record since March, and most Bitcoin spot ETFs had a single-day trading volume that was double the average. It was a surprising day for this emerging category.
Sosovalue data shows that excluding the yet-to-be-updated IBIT data, the total net inflow of the remaining Bitcoin spot ETFs reached 691 million USD on Wednesday, with the following performance:
GBTC: Net inflow of 30.91 million USD
FBTC: Net inflow of 308 million USD
ARKB: Net inflow of 127 million USD
BITB: Net inflow of 10.92 million USD
BTC: Net inflow of 10.81 million USD
HODL: Net inflow of 17.18 million USD
BRRR: Net outflow of 258 million USD
BTCO: Net inflow of 0 USD
EZBC: Net inflow of 0 USD
BTCW: Net inflow of 0 USD
DEFI: Net inflow of 66.9 thousand USD
Additionally, the Ethereum spot ETF data on Wednesday has not been fully updated, but Grayscale's ETHE net inflow reached 25.39 million USD, and Grayscale's FETH net inflow reached 26.90 million USD, with a total net inflow of 52.29 million USD.
Is the Bitcoin rally expected?
CoinShares research director James Butterfill stated that Trump's victory may mark a key turning point in the cryptocurrency market, as it is expected that the Trump administration will create an environment favorable for Bitcoin's continued rise through favorable legislation, cryptocurrency-friendly regulation, and macroeconomic conditions conducive to alternative assets.
James Butterfill expects that the election results may accelerate institutional adoption of cryptocurrencies. The key catalyst will be Trump's proposal of a Bitcoin bill, which may establish Bitcoin as a strategic reserve asset. The U.S. government could hold 5% of the total Bitcoin supply, and Trump may push regulators to be more friendly towards cryptocurrencies.
