Bitcoin is on the cusp of hitting a historic $77,000, with Trump’s election victory sparking unprecedented spot ETF inflows and investor enthusiasm. The bullish sentiment comes amid expectations of a Fed rate cut and a new post-halving bull market.

Trump’s Victory Sparks New Bitcoin Inflows

A new wave of optimistic inflows into Bitcoin-related items has been prompted by Donald Trump's election, which is expected to improve economic policies in the United States. As a result, Bitcoin is flirting with the $77,000 mark.

A new wave of investors sought risk-on assets, as Bitcoin's price nearly breached $77,000 on November 8, two days after Trump was declared the US election winner.

Investor Optimism Boosts Bitcoin Near All-Time High

A research paper from trading firm QCP Capital (via Cointelegraph) dated November 8th suggests that Bitcoin might potentially surpass $77,000 due to market excitement surrounding a Republican presidential victory. According to what QCP wrote:

“Unprecedented net inflows of $1.38 billion into BTC spot ETFs yesterday, coupled with optimism from Trump’s victory and a widely anticipated 25 bps Fed cut, have propelled BTC to $77,000 early this morning."

According to data compiled by Cointelegraph, Bitcoin hit a new all-time high of $76,999 around 8:15 pm UTC on November 7th.

Historical Patterns Indicate Potential for Further Gains

Based on tendencies seen in prior bull markets after Bitcoin's halving events, if investors keep pouring money into spot Bitcoin ETFs, BTC could reach new all-time highs. It is anticipated that the bull market following the halving would continue until the third quarter of 2025.

Ryan Lee, principal analyst at Bitget Research, predicts that Bitcoin will hit $100,000 before the year ends in 2024.

Bitcoin Positioned to Outperform Traditional Assets

It is possible that Bitcoin will do better than gold and more conventional forms of investment, such as stocks.

This is in part due to Trump's anticipated 60% tax on China, as explained in QCP's research note:

“As markets consider Trump’s proposed 60% tariff on China and fiscal concerns like the rising national debt, we expect BTC to carry less risk premium compared to equities, potentially positioning it to outperform other risk-on assets.”

Record-Breaking ETF Inflows Post-Election

Following a substantial hike from 7.5% to 25% rates during his first term, Trump has suggested a 60% tariff on Chinese goods.

The net inflows into Bitcoin exchange-traded funds hit a fresh record high the day following Trump's victory.

According to data compiled by Farside Investors, on November 7th, the total net inflows into US spot Bitcoin ETFs exceeded $1.37 billion.

Sustained Bullish Momentum Expected

Investor euphoria following the election could result in a surge in spot and ETF purchases, as pointed out by QCP Capital:

“This sustained bullishness in BTC could also create a feedback loop, with rising ETF inflows boosting BTC prices, which, in turn, attracts more retail capital and systematic fund buying as volatility declines.”

Cointelegraph spoke with analysts who predicted that favorable Ether ETF inflows would help push the price of Ether to a breakout over $3,200 in the near future, thanks to investors' growing demand for risky assets.