A growing number of investors are putting money into Bitcoin-tracking funds in anticipation of former President Donald Trump’s possible comeback to the presidency. They are optimistic about the cryptocurrency’s future, despite expecting some turbulence in Bitcoin prices during election week.
According to data analysis and news source The Block, ETFs tracking spot Bitcoin prices experienced a significant inflow of $917.2 million on October 30, the biggest one-day influx since March. BlackRock’s iShares BTC Trust ETF, known as the largest asset-managed Bitcoin spot fund, gained net flows amounting to $872 million—its biggest one-day influx since its inception in January 2024.
Bitcoin experienced a roughly 12% jump in October as the possibility of Trump’s re-election spurred interest. Trump has positioned himself as a crypto-friendly candidate, which has drawn attention from supporters of digital assets. Ryze Labs analysts noted that a Republican-led Congress could push forward cryptocurrency-friendly policies, boosting confidence in the market.
Polls indicated a tight race between Trump and Kamala Harris, but betting markets, like Polymarket, showed higher chances of a Trump win. According to Wincent senior executive Paul Howard, major crypto policy changes may be unlikely until there’s clarity in the presidential race.
In light of the election’s uncertainty, markets are bracing for possible swings in the price of Bitcoin. Deribit, a marketplace for cryptocurrency derivatives, predicts that, up until November 8, daily price fluctuations would be roughly 3.7% in each direction. According to Deribit’s post-election forecasts, depending on investor sentiment, Bitcoin may trade between $60,000 and $80,000. Both bullish and bearish bets’ peak open interest or the total number of outstanding contracts, is used to infer this range.
According to Coinglass statistics, open interest, a gauge of market activity, has increased dramatically on cryptocurrency derivatives exchanges, hitting a record high of $43.61 billion on Tuesday. Deribit CEO Luuk Strijers commented that while volatility is expected to stabilize after election week, many traders believe Bitcoin’s upward trend will persist.
As of Monday morning, Bitcoin hovered around $68,300. Earlier this year, in March, the cryptocurrency hit a record high of $73,798, buoyed by significant inflows into U.S. ETFs dedicated to digital assets. Bitcoin has rallied over 60% in 2024, significantly outpacing traditional assets like gold and stocks. This performance has positioned Bitcoin as a standout investment option for those looking to capitalize on potential market gains in the wake of upcoming political changes.
The rising price of BTC could benefit crypto mining firms like Stronghold Digital Mining Inc. (NASDAQ: SDIG) since they could earn higher rewards for their efforts.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CryptoCurrencyWire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer
CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is powered by IBN
