As Trump's Poll Numbers Rise, Bitcoin ETFs See Record Inflows

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As Trump's Poll Numbers Rise, Bitcoin ETFs See Record Inflows

The increasing likelihood of former U.S. President Donald Trump's reelection has led to a noticeable surge in Bitcoin demand. Prediction markets for the 2024 U.S. presidential elections estimate Trump's chances of being elected at 66.5%. This situation has boosted optimism in the Bitcoin market, refocusing investor attention on cryptocurrencies. Historical data shows that Bitcoin demand had similarly increased during the 2016 election cycle.

In March 2016, following Trump’s election as president, Bitcoin was trading around $700, and by late 2017, it had risen to nearly $3,000. Analysts attribute this movement to expectations of regulatory changes favorable to Bitcoin under Trump’s administration. A similar expectation may strengthen demand for Bitcoin ahead of the 2024 elections.

Record Investments in Bitcoin ETFs
Aside from the impact of political uncertainty, inflows into Bitcoin exchange-traded funds (ETFs) have reached historical levels. U.S.-based Spot Bitcoin ETFs have attracted renewed interest, with net inflows exceeding $870 million. Notably, BlackRock's IBIT ETF led the way with $629 million in investments, followed by Fidelity’s FBTC and BITB, which saw inflows of $133 million and $52 million, respectively.

Grayscale's BTC mini trust, HODL, and Ark’s ARKB also contributed among other ETFs. However, only Grayscale’s GBTC saw net outflows amounting to $17 million. Total trading volume exceeded $4.75 billion, with IBIT accounting for $3.3 billion.

Current Status of Bitcoin
Bitcoin’s market value and price have also increased during this period. Bitcoin rose to as high as $73,620 and is currently trading around $72,200, continuing with a value increase exceeding 6% this week. The total market capitalization of the cryptocurrency market has reached $1.43 trillion, while daily trading volume rose by 10.27% to $52.13 billion.

These market movements indicate the positive influence of Trump’s electability on investors and a consistent uptick in Bitcoin demand. The search for assurance amid political uncertainty, alongside expectations of potential regulatory changes, supports upward momentum in the Bitcoin market.