Given the arrival of Bitcoin (BTC) this morning above 75,000 dollars (USD), a new historical record, trading of exchange-traded funds (ETFs) in the currency skyrocketed.
In just the first 20 minutes of trading today, iShares Bitcoin Trust (IBIT) recorded USD 1 billion in trading volume. “That’s pretty much what he does in a full day,” projection Bloomberg analyst Eric Balchunas, announcing this situation.
It should be noted that IBIT, which operates in the United States, is the ETF of bitcoin largest in the world, with an accumulated flow of USD 26,000 million. This is issued by the company BlackRock, which in turn is the company with the largest managed capital globally.
The panorama seen today at IBIT is not an isolated case. According to Balchunas, according to the data he has access to, “other bitcoin ETFs are in the same situation, with crazy volume.”
“A day of record volume is expected,” the analyst concluded about bitcoin ETFs. “Since the price has risen so much, this is likely fueling the frenetic volume versus the crisis volume,” he added. These instruments came from a streak of three consecutive days of capital outflows due to electoral uncertainty, as the graph shows.
Flow per day of bitcoin ETFs in the United States since their launch. Source: Sosovalue.
The increase in volume today in bitcoin ETFs takes place after it became known that Donald Trump has won the United States presidential election. This is something that strengthens the bullish sentiment in the market, due to the support that the Republican has shown for the ecosystem.
During his political campaign, Trump promised to make the United States the capital of the Cryptocurrency industry and have national reserves in bitcoin, among other initiatives that boost the ecosystem. That is why the expectation surrounding his victory has been positioned as a potential key catalyst for the market.
Days of capital inflows into bitcoin ETFs may be coming, according to Balchunas
“Expect capital inflows this week,” Balchunas said of the ETFs of bitcoin in the United States in this environment, which would pressure the price upwards. These instruments buy BTC according to the capital inflows they receive (as well as sell in response to outflows), so their greater demand contributes to the appreciation of the currency.
The specialist remembers that the last time there was an increase in volume during a price rally was at the end of October. “That was a precursor to the recent flow marathon, IBIT raised $1.8 billion in the next few days,” he exclaimed. The market tends to repeat patterns, so this situation suggests positivity for the price.
“I’m not saying that it’s a guarantee that this will be repeated, but I’m a fan of patterns and it fits the pattern,” the specialist clarified. Thus, He was optimistic for the bitcoin market in the short term.
It should be taken into account, however, that the trading volume represents the amount of purchase and sale capital, in this case in ETFs. So, if this metric sets a new record today, it will not necessarily represent the level of demand.
According to Pedro Gutiérrez, an executive at the cryptoasset exchange CoinEx, There is a possibility that there are investors who sell bitcoin to make profits after the elections. Therefore, this could function as a “sell the news” scenario that temporarily pushes the price back.
This is something that financial specialist Norberto Giudice, known as CriptoNorber on social networks, where he creates educational content about crypto assets, had also warned. Although, beyond that, like others, they maintain bullish hopes in the medium and long term, especially considering Trump’s victory.
“The bitcoin bullrun is starting now,” CriptoNorber said in a recent interview done by CriptoNoticias. For him, there may be “some of those ‘sell the news’ that always happen, but then the rise will inevitably come.” In his opinion, Trump’s triumph enables a super cycle, which is a more bullish cycle than normal.
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