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- BlackRock’s Bitcoin ETF (IBIT) hit US$1 billion in trading volume within 20 minutes of market opening on November 6, driven by optimism around Trump’s pro-crypto stance.
- Other Bitcoin ETFs saw doubled average trading volumes, reflecting renewed investor interest in crypto assets, while Bitcoin reached a record high above US$75,000 amid expectations of supportive policies.
- Trump’s proposed agenda includes establishing a national Bitcoin reserve and removing SEC Chairman Gary Gensler, which could lead to increased crypto adoption and regulatory changes.
Following Donald Trump’s recent victory in the US presidential election, BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), saw an extraordinary surge in trading volume, hitting US$1B (AU$1.52B) within just 20 minutes of the market opening on November 6.
The swift increase comes as investors expect a possible pro-crypto direction under Trump’s administration.
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Record-Breaking Trading Day
Bloomberg’s Senior ETF Analyst, Eric Balchunas, noted that the fund typically sees US$1B in trading over an entire day, not within minutes.
Damn, $IBIT has seen $1b in volume in the first 20min- that’s about what it does in full day. Other bitcoin ETFs in same boat, crazy volume. Set for a record-breaking volume day (and given price is up so much, this is likely feeding frenzy volume vs crisis volume=look for… pic.twitter.com/1gSvV5Lwzo
— Eric Balchunas (@EricBalchunas) November 6, 2024
Balchunas says Other Bitcoin ETFs mirrored this momentum by reaching over US$6B (AU$9.13B) in trading volume. Most of the ETFs performed 2x their average, indicating a wave of renewed interest in crypto assets across the market.
Bitcoin’s price climbed to a new all-time high, breaking past US$75K (AU$115K), as the market reacted to Trump’s win and campaign promises, including pro-Bitcoin policies, a proposed national Bitcoin reserve, and reforms in the Securities and Exchange Commission’s (SEC) leadership.
What’s In Trump’s Agenda for Bitcoin?
Throughout the presidential campaign, Donald Trump made several statements on the cryptocurrency market that have captivated the crypto community by applying potential changes in regulatory and economic policy that could benefit the sector.
Besides removing the most infamous man in crypto history, Gary Gensler, from the SEC, Trump also unveiled a proposal to establish a national “strategic” Bitcoin reserve, a move that could integrate BTC into the country’s financial holdings. Such a reserve would reduce the number of coins available on the open market, and coupled with sustained or growing demand, it could potentially lead to higher Bitcoin prices.
Alongside his crypto policies, Trump has proposed economic measures, including tax cuts and import tariffs, which have drawn mixed responses from economists. Some warn that these policies might increase national debt, sparking interest in Bitcoin as a potential hedge against economic uncertainty.
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Historically, Bitcoin has shown strong performance in US election years, with notable post-election gains recorded in 2012, 2016, and 2020, aligning with Bitcoin’s halving cycle. The halving, which cuts the reward for mining Bitcoin in half roughly every four years, limits Bitcoin’s supply, a factor that has often driven price increases.
In the 90 days following previous election years, Bitcoin saw gains of 87%, 44%, and 145%, respectively. As we’re in another halving year, some investors are optimistic about a similar rally.