Bitcoin soared to new heights, reaching a record high following Donald Trump's election victory. This event triggered a surge in cryptocurrency prices and trading activity.
Trump's Victory Boosts Crypto Markets
Donald Trump's re-election is seen as a major catalyst for the recent surge in cryptocurrency prices. Sylvia Jablonski, CEO of Defiance ETFs, stated that Trump's administration supports risk assets and fosters growth in digital assets.
"The themes around the Trump trade for crypto are deregulation, potential tax cuts for an asset that is both held long term but also day traded, less dependency on parts of government like financial institutions and the Fed — or at least an alternative for decentralized currency — and overall support of risk assets and the growth of crypto... is really what’s making it grow," Sylvia Jablonski told CNBC.
Record-Breaking IBIT Trading Volume
BlackRock’s iShares Bitcoin Trust (IBIT) had a record trading volume of over $4.1 billion on November 6, surpassing well-known stocks such as Berkshire Hathaway, Netflix, and Visa.
Eric Balchunas, a Bloomberg ETF analyst, pointed out that this was the 'biggest volume day ever' for IBIT, which also saw a 10% increase, marking its second-best trading day since launch.
Growing Interest in Crypto ETFs
Bitcoin ETFs experienced significant growth in trading, with many funds doubling their average volume. Bitcoin ETFs have dominated the ETF landscape in 2024, with six of the top 10 most successful ETF launches this year being Bitcoin-focused.
There's growing interest in crypto index ETFs that could hold a variety of digital assets, along with filings for ETFs that hold altcoins like Solana, XRP, and Litecoin, highlighting increasing interest in diversifying portfolios beyond Bitcoin.
Trump's victory has reignited the strength of cryptocurrencies, pushing Bitcoin to record highs and spurring interest in crypto investments and ETFs.
