Bitfinex Analysts Predict Trump Win Could Spark ‘Perfect Storm’ for Bitcoin’s New ATH

Key Takeaways:

• Bitfinex analysts see Donald Trump's potential win as a “perfect storm” to push Bitcoin to a new all-time high (ATH).
• Bitcoin prices have rebounded amid U.S. economic issues and geopolitical unrest.
• Donald Trump currently leads Harris by 30% on Polymarket, thus intensifying crypto market interest.

A report by Bitfinex exchange analysts on October 28 indicates that Donald Trump's chance of winning the U.S. presidential election may create a “perfect storm” to propel Bitcoin ATH beyond its previous $73,800 record. 

Donald Trump's Potential Victory Odds Boosts Bitcoin Options Trading

According to Issue #128 of the Bitfinex Alpha report, analysts noted a significant increase in Bitcoin options trading, largely driven by the excitement surrounding the upcoming presidential election in the U.S.

The approaching November 5 election has notably influenced Bitcoin options trading. Traders are keeping a close eye on options that expire around key election dates, and these contracts are costing more due to expected market fluctuations. 

Bitfinex analysts think that volatility could skyrocket to 100 by November 8, signaling potential huge price swings after the election results are announced, especially with Donald Trump's strong chances of winning.

Despite facing some recent corrections, Bitcoin has demonstrated impressive resilience. 

After dipping to $52,756 in September 2024, the cryptocurrency rallied approximately 30% in October and now trades at $70,900, less than 4% away from scaling past its ATH record of $73,666 in March. 

Bitfinex analysts highlighted a “Trump trade” narrative, pointing out a strong correlation between Bitcoin's price movements and the likelihood of Donald Trump's victory in the upcoming election. 

Recent data from the decentralized betting platform Polymarket shows Trump leading Kamala Harris by a considerable margin of 30%, although Harris has a slim lead of 1.5% in national polls.

Beyond doubt, the relationship between political events and market trends creates a compelling environment for Bitcoin traders.

Historical precedent adds weight to these predictions. Following President Biden's victory and the May 2020 Bitcoin halving, Bitcoin surged over 35% in November 2020. This historical precedent suggests that a similar price movement could occur following the upcoming election, especially if Donald Trump secures a win. 

Bitcoin ETFs See Significant Inflows as Market Anticipates Election Impact

On Monday, the US spot Bitcoin exchange-traded funds (ETFs) market continued its strong performance, extending its net inflow streak to four consecutive sessions. 

According to Farside Investors, several notable ETFs contributed to this growth. 

The ARK 21Shares Bitcoin ETF (ARKB) experienced net inflows of $59.8 million, an increase from the previous day's $33.4 million. Meanwhile, Fidelity's Wise Origin Bitcoin Fund (FBTC) reported $44.1 million in inflows, down from $56.9 million the day before. 

The Bitwise Bitcoin ETF (BITB) also saw an increase, gaining $38.7 million, compared to a modest $2.5 million previously, while BlackRock’s IBIT recorded inflows of $315.2 million. 

Bitcoin ETF Daily Flow

Blackrock US$ Flow: 315.2 million

For all the data and disclaimers visit:https://t.co/04S8jMGl07

— Farside Investors (@FarsideUK) October 29, 2024

Overall, the U.S. BTC-spot ETF market achieved total net inflows of $479.4 million on Monday, up from a remarkable $402 million on October 25. 

As the market anticipates Donald Trump's election victory and potential shifts in policy that could benefit Bitcoin, many believe that these ETF inflows may serve as a catalyst for further price appreciation in the coming weeks.