The US spot Bitcoin exchange-traded funds (ETFs) recorded a massive net inflow of $870 million on Tuesday, marking the third-largest single-day inflow since their successful launch in the United States. This surge in global capital is fueling expectations that Bitcoin, the world’s largest cryptocurrency, could soon reach a new all-time high. Current market trends and growing institutional interest suggest a strong upward momentum, with Bitcoin trading above $73,000—just shy of its March 2024 peak.
According to the latest institutional data, Tuesday’s substantial inflow pushed the total net inflows for the 12 US Bitcoin ETFs past $23 billion year-to-date. Major asset management firms such as BlackRock and Fidelity Investments are among the key issuers driving this unprecedented demand.
Rising Demand for Bitcoin ETFs Ahead of US Election
Growing interest in crypto-related risk exposure appears closely tied to the US presidential election. Analysts point to former President Donald Trump’s improved odds in prediction markets as a significant catalyst. Throughout his campaign, Trump has expressed strong support for digital assets, pledging to make the US a “crypto capital” and a “bitcoin superpower.” As a result, cryptocurrencies like Bitcoin and Ethereum have become central to what some traders are calling the “Trump trade.”
Although Trump leads in global betting markets, recent polls indicate a tight race between him and Democratic candidate, Vice President Kamala Harris. Harris has also voiced support for clear regulatory frameworks for cryptocurrencies, adding further momentum to the bullish sentiment around digital assets.
Nick Foster, founder of crypto trading platform Derive.xyz, noted in a recent report that Bitcoin options data suggests a one-in-three chance that Bitcoin could experience a price swing of more than 10% on November 5—the day of the US presidential election.
Bitcoin Price Momentum and Market Performance
As of this writing, Bitcoin is trading near $72,480, having retreated slightly after breaching the $73,000 resistance level. Still, both technical and momentum indicators suggest that Bitcoin may be poised to surpass its all-time high of $73,798, set in March of this year. With a year-to-date gain of over 73%, Bitcoin has significantly outperformed traditional asset classes such as stocks and gold.
Wall Street firm Bernstein recently projected that Bitcoin could reach as high as $200,000 by the end of 2025. The report emphasized that institutional investors are expected to become the largest holders of Bitcoin, surpassing even its creator, Satoshi Nakamoto. This shift is largely attributed to the overwhelming success of Bitcoin ETFs, which continue to attract substantial international capital and have emerged as one of the most popular trading vehicles in the US market.
Bernstein’s analysts also suggested that a Trump victory in the November election could propel Bitcoin to new highs between $80,000 and $90,000.
Frequently Asked Questions
What caused the recent spike in Bitcoin ETF inflows?
Increased institutional interest and political developments leading up to the US presidential election have driven significant capital into Bitcoin ETFs. Positive regulatory sentiment from both major candidates has also bolstered investor confidence.
How do US elections influence Bitcoin’s price?
Elections create macroeconomic uncertainty, which often leads investors to seek alternative stores of value. Promises of clearer cryptocurrency regulations from candidates have further strengthened Bitcoin’s appeal as a hedge against traditional market volatility.
What is the outlook for Bitcoin by the end of 2025?
Some analysts predict Bitcoin could reach six-figure prices, citing institutional adoption through ETFs and growing mainstream acceptance. For the latest market insights, you can explore real-time analysis tools.
Are Bitcoin ETFs a better investment than physical Bitcoin?
ETFs offer regulated exposure without the technical challenges of self-custody, making them attractive for traditional investors. However, they may lack the decentralization benefits of holding Bitcoin directly.
How does Bitcoin’s performance compare to traditional assets?
Bitcoin has significantly outperformed stocks, bonds, and gold in 2024, with returns exceeding 70% year-to-date, reinforcing its role as a high-growth potential asset.
What happens if Bitcoin breaks its all-time high?
Breaking through previous resistance levels often triggers renewed buying interest and can lead to accelerated price appreciation as both retail and institutional investors enter the market. To discover advanced trading strategies, consider exploring dedicated platforms.