BTC Hits New All-Time High on Trump Victory

Turning our focus to BTC, the US presidential election materially influenced buyer demand.

The US presidential election materially influenced BTC demand, with Trump leading from the start of the session (UTC). Hopes rose for an end to the SEC’s era of regulation by enforcement.

Trump’s victory could be more significant for BTC as he had previously pledged to make BTC a US strategic reserve. He also said the US government would become a BTC HODLER.

BTC demand could surge if Trump moves forward with his strategic reserve plan. Furthermore, making the US government a BTC HODLER would mitigate oversupply risk; the US government has a BTC stockpile of 208,109 BTC, valued at $15.69 billion.

On Tuesday, the US BTC-spot ETF market saw total net outflows of $116.8 million, down from outflows of $541.1 million on Monday. Uncertainty about the US presidential election impacted demand for US BTC-spot ETFs.

However, demand surged on Wednesday, November 6, as investors reacted to the election. According to Farside Investors, excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market had net inflows of $691.0 million.

The last time the US BTC-spot ETF market reported a $1 billion day was in March 2024. Inflows of $1 billion could signal a potentially seismic shift in the supply-demand balance.

On Thursday, November 7, the US Federal Reserve will deliver its penultimate monetary policy decision for 2024. Economists expect the Fed to cut interest rates by 25 basis points to 4.75%.

Unless the Fed surprises markets by holding on interest rates at 5.0%, the FOMC press conference could have a greater influence on BTC demand.

Fed support for a 25-basis point December rate cut could drive BTC toward $80,000. Conversely, hints of a December policy hold may dampen BTC demand.

However, US politics will likely trump the Fed, signaling a bullish near-term outlook.

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