On Nov. 5, BlackRock’s spot Bitcoin exchange-traded fund, BITB, recorded its largest net outflow day since inception, with $44.2 million leaving the fund.

Since its launch in January, BlackRock’s BITB has experienced only six days of outflows, with the previous largest single-day outflow of $36.9 million on May 1.

According to data from Farside Investors, the 12 spot Bitcoin ETFs recorded a net outflow of $116.8 million on Nov. 5, extending their outflow streak to three consecutive trading days. However, these outflows were significantly lower than the $541.1 million recorded on Nov. 4, which marked the second-largest outflow day for these investment products.

Across the sector, outflows were dominated by Fidelity’s FBTC, which saw $68.2 million withdrawn, leading the day’s redemptions. Other funds also posted notable outflows, including ARK Invest and 21Shares’ ARKB, which saw $12.5 million in redemptions, Franklin Templeton’s EZBC with $6 million, VanEck’s HODL with $3.9 million, and Valkyrie’s BRRR, which reported $1.3 million in net outflows.

In contrast, Biwise’s BITB was the only spot Bitcoin ETF to log net inflows, with $19.3 million entering the fund. Grayscale’s GBTC and several other spot Bitcoin ETFs saw zero flows for the day.

Bitcoin defies ETF outflows, surges to record high

Despite ETF outflows extending for a third day, Bitcoin’s price rose sharply overnight.

CoinGecko data shows Bitcoin (BTC) reaching an unprecedented $75,000 in a potential reaction to election news that former President Donald Trump might be gaining momentum in early voting.

The flagship cryptocurrency later retreated slightly, trading up 8.7% at $74,563 at the time of reporting.

Bitcoin’s performance has remained strong, especially following its previous all-time high of $73,797 set on March 14, though it has mostly traded below $70,000 for much of the year.

While Bitcoin ETFs experienced significant outflows, U.S.-based spot Ethereum ETFs had a quieter day, registering zero net flows on Nov. 5, according to Farside Investors. However, Ethereum (ETH) mirrored Bitcoin’s upward price momentum, gaining 6.7% to trade just above $2,600.

According to CoinGecko data, the global crypto market capitalization increased by 6.6% over the past day, reaching $2.58 trillion.

Bitcoin has experienced wild price swings since Vice President Kamala Harris announced her candidacy for the U.S. Presidential election in July 2024.

The largest cryptocurrency attempted to test its previous all-time high of $73,738 on Oct. 29, 2024, with no success. Traders expect higher volatility closer to elections and in the aftermath of the event. Crypto prediction markets like Polymarket and Kalshi provide insight into crypto traders’ views. 

Polymarket sees about $3.21 billion in trading volume as participants wager on the winner of the November elections. Harris’ opponent, former U.S. President Donald Trump, is a clear favorite, with 61.1% bets in his favor, on Polymarket.

Kalshi, a prediction market regulated by the U.S. Commodity Futures Trading Commission places the odds of Trump’s win at 56.8% against Harris’ 43.2%. The betting contract has drawn $234.98 million as of November 5, 2024. 

The efficacy of betting markets in predicting a winner in the election remains debatable, however it sheds light on the sentiment among crypto traders. 

Trump rallied crypto traders’ support with his pro-crypto approach to regulation, and speech at the Nashville Bitcoin Conference. The former U.S. President shared his plans for a national Bitcoin reserve and proposed making the States a world leader in BTC mining. The former President’s plan is that the U.S. will hold 100% of the Bitcoin in its possession. 

Harris’ “Opportunity Agenda for Black Men” is a proposal that reflects the Vice President’s stance on crypto, while much detail is left out, it points at a measured approach to the asset class. 

U.S. markets won’t be open late on Tuesday, as states tally votes, however crypto is a major exception and a Trump win could push Bitcoin closer to the $80,000 level according to data from BTC derivatives markets. 

Derivatives data points at a run to the range between $60k – $80k

Deribit’s Bitcoin Volatility Index shows a consistent rise in volatility since September 26, 2024, however the metric failed to see a major move like one noted during President Joe Biden’s exit from the Presidential election, in July, and the U.S. markets correction in August.

For the weeks following the elections, data from Deribit exchange highlights the $60,000 to $80,000 range, as the one that collects the peak open interest, or outstanding futures contracts for both bullish and bearish bets of traders. 

Bitcoin Spot Exchange Traded Fund inflow data from Farside Investors shows a net outflow of $541.10 million on Nov. 4. This marks the second consecutive day of institutional investors pulling capital from the asset, likely preparing for the volatility in the aftermath of the election.

Combining data from the prediction market and Farside Investors’ BTC ETF flows, it is observed that institutional investors expressed confidence in Bitcoin and increased their capital flow when the odds of a Trump win were higher, nearly 67%, on October 30. Bitcoin ETFs received a net of $893.3 million in inflows on the same day. 

In March, (BTC) Bitcoin hit its all-time high of $73,738 in response to the large volume of capital inflow to U.S. based Spot Bitcoin ETFs. At the time of writing, on Tuesday, November 5, Bitcoin hovers around the $69,000 level, less than 10% away from the all-time high. 

Technical analysis: Bitcoin eyes rally to new ATH

Key events since July 2024 have aided the price swings observed in Bitcoin. The BTC/USDT daily chart from TradingView shows BTC’s attempt to test its previous all-time high post Harris’s announcement of her proposal for crypto. 

Derivatives data highlights the importance of the $60,000 to $80,000 range for Bitcoin price. The asset traded within this range throughout the events since July, with the exception of its August 5 decline to $49,000. 

BTC is in a short-term uptrend, starting Aug. 5 and the token could extend its gains, forming higher highs and higher lows, post the eve of the elections, in the aftermath. Bitcoin’s previous all-time high at $73,738 is a key resistance and a successful break past this level could push BTC closer to its $80,000 target. 

Bitcoin is still undervalued ahead of the election

Crypto.news talked to experts ti get insights on Bitcoin price.

“With the US Election taking place today, many believe that the price of crypto will be immediately swayed by the candidate who wins, since they have varying stances on the future of digital assets, with Trump historically being more inclusive of digital assets than Harris. While this may be true in the short term, traders should also consider that the price of crypto goes beyond what party directly supports and relies more heavily on policies they will implement around inflation, global political discourse, and the availability of investment opportunities within the digital assets space.”

BingX spokesperson

The BingX executive believes that the current cycle is one of the worst-performing ones, post the Bitcoin halving, leading to the belief that BTC is still undervalued. 

“If we look at other market sentiment indicators, crypto-related stocks have been climbing, with MicroStrategy, and Robinhood both up in the month before today’s election. In general, the digital asset community should expect to see the price of digital assets rise solely based on historical indicators.”

“If the elected candidate is supportive of crypto, it could boost market confidence; if not, it could introduce some uncertainty. The uncertainty surrounding the election outcome could trigger market fluctuations. Investors should closely monitor election developments and market reactions and be prepared to manage risks accordingly.”

Ryan Lee, Chief Analyst at Bitget Research

“Politics is a secondary factor, and historical analysis suggests that one or two major catalysts typically drive bull markets.” Thielen explains how it would be absurd, “to assume that when Fed Chair Bernanke maintained low interest rates in 2011, your neighbor suddenly decided to use Bitcoin to buy contraband on the Silk Road exchange,” meaning looking for direct correlation between election outcomes and Bitcoin price reaction may be less than ideal. 

Markus Thielen, CEO at 10x Research

The executive argues that the primary driver of the Bitcoin rally is the institutional adoption of BTC, sparked by BlackRock’s application for a Spot BTC ETF earlier this year. 

The 2024 US election between Kamala Harris and Donald Trump has sparked interest among investors eyeing potentially high-yield cryptocurrencies. With heightened market attention, certain 5 crypto to buy to turn to $100 to $100k could experience significant gains due to increased trading volumes and speculative buying. 

5 Cryptos  to Buy to 100x by 2024 US Presidential Election

As the U.S. presidential election looms, crypto investors face heightened uncertainty. Bitcoin recently dropped to $68K, fueling global market concerns. With Ethereum and Solana also affected, investors watch closely for potential opportunities amid market fluctuations.

Bitcoin (BTC) Will Face Brunt of US Elections

Bitcoin (BTC) has become a hot topic in the upcoming US elections and has faced resistance since early October. Despite optimistic predictions from crypto analysts, BTC reached $69,000 only 15 days before the election. 

At the time of writing, the BTC price has been trading at $68,887, which is 95% in the past year. With substantial investment in fiat and crypto, Bitcoin remains the leading choice among cryptocurrencies. 

Presidential candidate Donald Trump envisions the U.S. as a Bitcoin capital, while Vice President Kamala Harris emphasizes prioritizing black men in Bitcoin investment. Bitcoin will continue to be the top crypto to buy in 2024.

Super Trump (STRUMP), a PolitFi Crypto 

Super Trump (STRUMP) has become a top choice for investors seeking political finance assets. Currently trading at $0.006341, STRUMP has surged 172% over the past year.

With its alignment with former President Donald Trump’s ideals of limited government control and economic freedom, STRUMP is gaining traction ahead of the U.S. election. Experts suggest it could bring strong returns, potentially turning $100 investments into substantial gains, making it a notable crypto to buy now. If the bulls return, the STRUM price could surge to $0.001 after the elections.

Doland Tremp (TREMP), Another PolitFi Crypto To Watch Ahead of US Elections

Super Doland Tremp (TREMP), a meme coin themed around political satire, has captured attention on the Solana blockchain. Modeled with humor referencing Donald Trump, TREMP has seen an impressive 146% surge since its launch. Currently priced at $0.3032, the token recently climbed another 4% in 24 hours, fueling investor interest.  Often compared to BODEN, another politically inspired coin, TREMP is seen as a “crypto to buy” during the U.S. 2024 election season.

The cryptocurrency Tremp (TREM) has recently experienced a notable fluctuation in its market trends. Data from Santiment reveals that TREM’s price saw a significant spike in early May 2024, followed by a gradual decline into mid-June. 

The downward trend persisted, showing limited recovery through July and August. However, late September and October brought heightened social activity, with social volume reaching unprecedented highs in early November, suggesting increased investor interest or speculation around the token.

Maga (MAGA)

Maga (MAGA), a cryptocurrency associated with the MAGA movement, currently ranks 276th among global digital assets. With a market cap of around $146 million, the asset has faced recent volatility, prompting investors to adjust their approaches. MAGA’s price has dipped to $3.32, reflecting a 2% decline over the past 24 hours. 

Since its launch, however, MAGA has surged by 19,936%, positioning it as a notable crypto to buy ahead of the 2024 U.S. election. The political climate could further drive interest in MAGA, making it a prominent choice among politically themed altcoins.

Maga (MAGA) currently shows 27.3% of its “In the Money” holdings, representing 12.83 million MAGA tokens. Meanwhile, 40.9%, or 19.22 million tokens, are “Out of the Money,” with 31.8% “At the Money.” This financial breakdown reveals varying profitability across MAGA holdings, reflecting its volatile trading environment.

Sui (SUI)

Sui (SUI), a Layer 1 blockchain and smart contract platform, is gaining attention for its fast, secure, and private digital asset solutions. With a current Total Value Locked (TVL) of $984.33 million, Sui’s popularity is surging. 

The latest SUI price rose to $1.55, marking an impressive 4% increase. This upward trend suggests a robust buy signal, reflecting growing market confidence in Sui as a significant altcoin. As it attracts more interest, Sui is establishing itself as a promising player in the blockchain landscape.

Cryptocurrencies are poised to react to the election’s outcome, with some assets standing out for their performance potential. Investors are encouraged to stay informed, as market movements could provide unique entry points.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.