October witnessed a significant surge in Bitcoin value, with prices jumping by 14%. This increase is largely attributed to the anticipation surrounding a potential return of Donald Trump to the political arena, who is considered a proponent of cryptocurrency. However, as Bitcoin prices rose, the Bitcoin Spot ETFs experienced an unexpected downturn at the start of November, with $54.9 million in withdrawals. Notably, BlackRock’s renowned IBIT fund saw no new investments for the first time in several weeks, raising questions about investor sentiment just days before the upcoming elections.
BlackRock ETF Inflows Hit Zero
October 31 marked a historic day for Bitcoin exchange-traded funds (ETFs) in the United States, with a record influx of $893 million. BlackRock’s iShares Bitcoin Trust ETF (IBIT) was at the forefront, amassing a remarkable $875 million in a single day, pushing its total to nearly $2.2 billion. However, this momentum experienced an abrupt halt shortly before the election results. Political dynamics appear to have influenced the market, with total U.S. Bitcoin ETF inflows suffering a setback, registering $54.9 million in outflows as reported by Farside.
Fidelity spearheaded these outflows, reporting $25.6 million, closely followed by ARK with $24.1 million in withdrawals, according to Farside Investors data. Meanwhile, the BlackRock Bitcoin ETF recorded zero inflows for the first time in recent trading sessions. These developments occur amidst growing economic pressure on digital assets and increasing regulatory uncertainties, contributing to heightened investor apprehension in an already volatile market environment.
Bitcoin Price Analysis
In recent days, Bitcoin (BTC) has demonstrated a robust recovery, reaching a peak around $73,300. On-chain analytics have identified the formation of a “golden cross,” a bullish indicator suggesting that more prosperous times could be imminent. This technical pattern, characterized by the 30-day moving average crossing above the 365-day moving average, often signals the continuation of a bullish trend, hinting at a potential rally on the horizon.
As of the current analysis, Bitcoin is valued at $69,591.07, experiencing a slight decline of 0.93% over the past 24 hours. The approaching U.S. elections have led to a surge in short-term implied volatility, reaching levels unseen in months. This has resulted in a marked inversion of market dynamics, as short-term expectations outpace their longer-term counterparts, reflecting the heightened uncertainty and potential for market shifts during this politically charged period.
