Trump Effect: Bitcoin ETF Inflows Hit Record High

- Record Inflows into Bitcoin ETF on November 9 - $1.38 Billion, First Day After Trump Election Win [Unblock Media] Bitcoin Exchange-Traded Funds (ETFs) recorded a historic net inflow on November 9, the day after Donald Trump's election as President of the United States. The net inflow amount recorded was a staggering $1.38 billion, the highest in the history of Bitcoin ETFs. Notably, BlackRock's IBIT alone had a net inflow of over $1 billion, marking the largest inflow since its launch in January. Overall, the cumulative net inflows for all Bitcoin ETFs surpassed $25 billion for the first time. Interestingly, none of the 12 ETFs recorded any net outflows. Former President Trump's economic policies generally focused on deregulation and tax cuts. His favorable stance on cryptocurrencies particularly appealed to investors, leading to expectations of accelerated financial innovation and deregulation in the crypto market under his leadership. Additionally, Bitcoin traded above $76,000 during Asian morning hours, representing an almost 10% increase compared to the previous week. The Federal Reserve cut interest rates by 25 basis points on Thursday. Interest rate cuts increase liquidity by supplying more money into the economic system. Increased liquidity allows investors to purchase more assets, raising the demand for risk assets like Bitcoin. Moreover, a weaker dollar contributes to the rise in prices across various assets, including Bitcoin. Ethereum (ETH) ETFs showed similar trends. Positive expectations for decentralized finance (DeFi) surged with Trump's election, resulting in a net inflow of $78 million. Ethereum's price increased by more than 10% on Thursday. The reason Trump's pro-cryptocurrency policies and deregulation had such a significant impact among Ethereum investors is because Ethereum is the primary platform for DeFi projects. There was an expectation that Trump's pro-cryptocurrency policies would lead to greater growth in these innovative financial services. In conclusion, Trump's election and the Federal Reserve's interest rate cut had significant impacts on the cryptocurrency market, with both Bitcoin and Ethereum showing positive reactions. The inflows and price increases reflect heightened investor confidence and trust in cryptocurrencies.