Bitcoin spot ETFs saw a big boost of $622 million in inflows on November 6, right after Donald Trump won the election. This change hints at a friendlier regulatory environment for cryptocurrencies. Analysts believe that Bitcoin's 7% jump after the election could signal a potential breakout.
The Fidelity ETF, known as FBTC, led the charge with $309 million. Overall, Bitcoin spot ETFs had a daily trading volume of $6.07 billion, the highest since March, according to SoSo Value. Meanwhile, BlackRock's ETF, IBIT, also made a significant impact, hitting a record turnover of $4.14 billion.
These inflows came just as Bitcoin reached a new all-time high of $76,243 on November 6. However, by Thursday morning, it had pulled back to $74,900, still showing a gain of about 1.2%, as CoinGecko reported. Ether (ETH/USD) also climbed, trading at $2,810 in Europe on Thursday morning, which is an increase of over 7%. However, it's still 42.2% below its all-time high from November 2021. Ethereum spot ETFs saw total net inflows of $52.3 million.
Katie Stockton, the Chief Technical Analyst at Fair Lead Strategies, pointed out Bitcoin's upward momentum. She noted that we might see a breakout from its long-term downtrend channel. If Bitcoin closes the week above around $67,000, it would confirm this breakout. She suggested a long-term target of about $80,600.
Now, all eyes are on the Federal Reserve's upcoming rate decision. There's nearly a 100% chance of a rate cut, as highlighted by CEX.IO's Lead Analyst, Illia Otychenko. He mentioned that while the Fed's move is likely already priced in, Powell's comments could carry more weight due to recent economic data showing weaker job growth.
Otychenko also pointed out potential inflationary pressures from Trump's proposed policies, which could affect the Fed's easing plans. He warned that significant tariff increases might limit the Fed's ability to cut rates.
Even with Bitcoin's price surge and new records, we’re seeing signs of slowing momentum. Otychenko explained that the climb to higher levels is coming with weaker volume momentum. This could lead to consolidation if the volume doesn’t improve. Analysts have identified supply zones between $71,700 and $72,700 if Bitcoin falls below $74,000, with $73,200 acting as a potential support level.
The evolving crypto market, shaped by changing economic and political conditions, will be a hot topic at Benzinga's Future of Digital Assets event on November 19.