Bitcoin Dropped Below 75 Thousand Dollars

CoinDesk 20 Index: 2,238.35 +1.98%

Bitcoin (BTC): $75,007.25 +0.43%

Ether (ETH): $2,809.39 +6.34%

Nikkei 225: 39,381.41 -0.25%

Bitcoin (BTC) reached an all-time high of $76,000 late yesterday after Republican Donald Trump won the US election, ushering in a widely anticipated bullish period in the crypto industry. According to CoinGecko data, BTC gained 6.6 percent in value in the last 24 hours and increased its 30-day gain to over 21 percent, more than doubling its value compared to last year. The strength in BTC has contributed to a more than 10 percent rise in many cryptocurrencies, from dog-themed tokens to decentralized exchanges. Thus began what has been described as the “Trump trade.” Analysts expect a 0.25 percent interest rate cut this week, which will benefit assets such as BTC by directing investors to alternative investments. Polymarket gives a 97% chance of a 25 basis point cut and a 1% chance of a 50 basis point cut.

BTC’s rise to an all-time high on Wednesday triggered an increase in inflows recorded by ETFs, which managed to break a three-day outflow streak by capturing $621.9 million. Most notable here was that market leader BlackRock’s IBIT recorded strong inflows despite seeing net outflows of $69 million. Trading volume in the ETF reached record levels, Bloomberg analyst Eric Balchunas reported. “IBIT had its highest volume day ever with $4.1 billion in transactions,” Balchunas wrote.

Ether (ETH) rose over 7% in the last 24 hours, outperforming the digital asset market, which gained 2.7%. The cryptocurrency exceeded $2,800 for the first time since the beginning of August, thus leaving the $2,300-2,600 range where it was stuck even while other cryptocurrencies were rising. Trump’s victory raised hopes for a “DeFi Renaissance” and may have created a breakout in ether’s price.

The chart shows short and long term risk reversals (25rr), which measure the difference in pricing on call and put options. A risk reversal is a positive development and indicates a bias or bullish outlook for the options. Source: Amberdata