On a pivotal Wednesday, BlackRock, the globe’s largest asset manager, reached an unprecedented milestone in the Bitcoin ETF sector. This accomplishment is marked by the most substantial inflows recorded since the launch of these investment vehicles in January.
Surge in Bitcoin ETF Demand Preceding US Presidential Elections
As reported by Bloomberg, approximately $872 million flowed into BlackRock’s iShares Bitcoin Trust, setting a new daily record for the fund. This substantial influx underscores the escalating demand for Bitcoin ETFs, positioning the fund among the top global ETFs in 2024.
Currently, BlackRock’s Bitcoin holdings have soared to 429,185 BTC, with a valuation nearing $31.04 billion. This accounts for roughly 2.04% of Bitcoin’s total capped supply of 21 million coins.
The recent surge in inflows is being attributed to the “Trump trade” phenomenon. This trend is linked to pro-crypto Republican nominee Donald Trump, who is gaining traction in betting markets ahead of the November 5 election.
Political Dynamics Influencing Bitcoin’s Trajectory
Bitcoin is on the cusp of new heights, buoyed by a significant 13% rally in October. James Seyffart, an ETF analyst with Bloomberg Intelligence, highlighted on Bloomberg Television that the demand for these ETFs is palpable. Investors are seemingly responding to both Bitcoin’s upward momentum and Trump’s favorable odds in the political sphere.
Trump has been vocal about his intention to transform the US into the world’s “crypto capital” and establish a strategic Bitcoin reserve aimed at halving the nation’s $35 trillion debt.
Conversely, Democratic Vice President Kamala Harris has expressed support for a regulatory framework for the cryptocurrency sector. However, she has yet to detail how a potential new administration would address the community’s calls for leadership changes at the US Securities and Exchange Commission (SEC) and its approach to digital assets.
Rising Price Predictions for Bitcoin
Amid a bullish outlook for the leading cryptocurrency, market expert Ali Martinez has shared intriguing insights regarding Bitcoin’s potential price path in the months to come.
In a recent social media post on platform X (formerly Twitter), Martinez examined historical trends, indicating that Bitcoin has historically peaked between the 1.618 and 2.272 Fibonacci retracement levels during previous bull cycles.
If this pattern persists, Martinez forecasts that Bitcoin could reach a price range between $174,000 and $462,000 in the current cycle.
Investor Behavior Signals Bullish Outlook
In addition to price predictions, Martinez identified another bullish indicator: a notable outflow of Bitcoin from cryptocurrency exchanges. In the past 48 hours, approximately 8,000 BTC, valued at about $576 million, have been withdrawn from exchanges.
This trend reflects an increasing tendency among investors to retain their Bitcoin rather than sell, potentially exerting upward pressure on prices as BTC inches closer to its all-time high of $73,700 reached in March.
Currently, the daily chart indicates BTC’s price retracing below the pivotal $72,000 level. As of this writing, BTC is trading at $71,640, marking a 1.2% retracement over the past 24 hours.
