This week is ending on a very high note with a series of favorable news in the crypto market, sparking waves of optimism in the market. Bitcoin ETFs saw a record $1.38 billion in net inflows on Thursday, a day after Trump won the US Presidency and Bitcoin is also continually breaking its highs. 

ETF Inflows, Fed Rate Cut Propels BTC To Highs

BlackRock’s IBIT took the lead with over $1.1 billion in net inflows, which was also its highest-ever since it went live in January. Cumulative net inflows across all products crossed $25 billion for the first time. Notably, none of the twelve ETFs showed any net outflows.

Additionally, a widely anticipated 25 bps Fed rate cut was the icing on the cake, which, together with the above-mentioned events, propelled Bitcoin to $77,000 this morning, QCP broadcast noted in its latest broadcast message. Notably, the rate cut typically supports risk assets like Bitcoin by increasing liquidity and weakening the dollar.

Besides, Ether (ETH) ETFs also logged $78 million in net inflows following Trump’s victory. ETH rose more than 10% on Thursday. There are expectations of pro-crypto policies and deregulation under the Trump regime which has boosted investors’ confidence in the industry. 

Are Investors Pulling Back?

However, it noted that the investors are beginning to pull back on some “Trump trades” as the dollar has reversed much of its post-election gains, and Treasury yields have settled back into recent ranges after a brief whipsaw.

It went on to note that as markets consider Trump’s proposed 60% tariff on China and fiscal concerns like the rising national debt, they expect BTC to carry less risk premium compared to equities, potentially positioning it to outperform various other risk-on assets.

‘The Sustained Bullish in Bitcoin’

It further remarked that this sustained bullishness in Bitcoin could also create a ‘feedback loop’, with rising ETF inflows boosting BTC prices, which will, in turn, attract more retail capital and systematic fund buying as volatility declines.

As a result of Donald Trump’s election victory, the cryptocurrency market has experienced a remarkable surge. Bitcoin soared above $76,400, marking a new all-time high, while Ethereum climbed above $2,839 and Solana approached $190. This surge reflects the optimism surrounding Trump’s pro-crypto stance, which is expected to foster a more favorable regulatory environment for digital assets.