US Bitcoin ETFs have recorded their most significant daily inflow, amassing $870 million, as Bitcoin approaches its all-time high. This interest is driven by speculation of potential political shifts, notably the possibility of a Trump victory, which investors believe could favor the cryptocurrency industry.
Bloomberg data indicate that inflows for 12 Bitcoin ETFs surpassed $23 billion. Analysts attribute this demand to Trump’s odds in election betting markets. Although prediction markets show Trump leading, polls suggest a tight race. Trump's stance resonates more with the crypto community, driving investor interest.
Bitcoin options markets predict a substantial price swing around election day, potentially driving the cryptocurrency to a new high. Expert Eric Balchunas notes Bitcoin ETFs are poised to surpass 1 million BTC holdings, possibly overtaking Satoshi Nakamoto by December. Recent trading volumes suggest reaching this milestone sooner.
While optimism is high, Balchunas warns of unpredictable market conditions that may lead to a selloff. However, continued price rise and positive election outcomes could drive further rapid accumulation, as indicated by the market's fear of missing out (FOMO).
Currently, Bitcoin trades at $72,360, reflecting an 8% increase over the week, demonstrating heightened investor interest amidst the election speculation.
