The week before the elections was a true reflection of political polarization. The dominant narrative suggested that a possible victory for Donald Trump could bring a positive boost to Bitcoin, given his pro-crypto stance and his commitment in his 2024 campaign to less restrictive policies in this area.
This led many investors to view Bitcoin as a speculative bet to benefit from a victory by the Republican candidate, resulting in a “Trump pump” or bullish momentum triggered by the expectation of a Trump victory..
This phenomenon generated an avalanche of inflows into Bitcoin exchange-traded funds (ETFs) in the previous days, although the sentiment changed radically on November 4.
Just one day before the election, Bitcoin ETFs in the United States experienced their second-largest single-day outflow, with more than $540 million withdrawn from the market.
This change suggests that many investors decided to lock in profits or protect their assets in the event that the election result turned out to be unfavorable to their expectations.
Of the ETFs, BlackRock’s iShares Bitcoin Trust was one of the few to receive net inflows, with positive inflows of $38 million, a sign that some investors remain confident in Bitcoin’s long-term potential, even in times of high volatility.
Everything changed with the first results in the US.
However, as election night progressed in the United States, Bitcoin was reacting almost in lockstep. Each State won by the Republican Party represented a step in the price of Bitcoin, which already with the result well advanced and when Trump’s victory was clear marked its new maximum price.
After Donald Trump’s victory, the market began to anticipate a more favorable regulatory climate for cryptocurrencies. This generated an increase in institutional demand and the value of Bitcoin, which reached its ATH around $76,943 on November 7, 2024.
Investor interest also grew after a 25 basis point rate cut by the Federal Reserve, which strengthened the favorable environment for alternative assets such as Bitcoin, now seen as a haven from looser monetary policies. This growth was reflected in a massive capital increase in US Bitcoin ETFs, led by BlackRock, whose fund received a record flow of more than $1.3 billion in new assets in just one day.
Now, analysts are eyeing a possible target around $80,000 or even $86,000 in the short term. That is why it is the best time to enter platforms like Bit2Me and start testing with this crypto asset that is going to give a lot of talk during 2025.
However, with technical indicators entering overbought territory, there could be consolidations or slight corrections in the coming days before a longer-term uptrend continues.