What’s Causing the Bitcoin Bull Rally? QCP Capital Reveals Top Factors

This week has ended on an incredibly positive note, with a wave of favorable news sparking renewed optimism in the crypto market. Bitcoin ETFs saw a record-breaking $1.38 billion in net inflows on Thursday, following Donald Trump’s victory in the U.S. Presidential race. Bitcoin, in turn, continues to break new highs, with the market momentum showing no signs of slowing down.

Are good times finally here?!

ETF Inflows, Fed Rate Cut Boost Bitcoin

BlackRock’s IBIT took the lead with over $1.1 billion in net inflows, which was also its highest ever since it went live in January. Cumulative net inflows across all products crossed $25 billion for the first time. Notably, none of the twelve ETFs showed any net outflows.

Adding to the excitement, the highly anticipated 25-basis point rate cut by the Federal Reserve acted as the icing on the cake. This, coupled with the previously mentioned events, propelled Bitcoin’s price to $77,000 this morning, according to QCP’s latest broadcast.

The rate cut tends to support risk assets like Bitcoin by increasing liquidity and weakening the dollar—two factors that benefit the cryptocurrency market.

Ethereum ETFs Pick Pace

Ethereum (ETH) ETFs also saw a significant boost, with $78 million in net inflows following Trump’s victory. ETH rose more than 10% on Thursday, reflecting optimism around the pro-crypto policies that are expected under the Trump administration. Investors are increasingly confident that deregulation and favorable policies will foster a more supportive environment for digital assets.

Are Investors Pulling Back?

While the market continues to rally, some caution is emerging as investors pull back on certain “Trump trades.” The dollar has reversed much of its post-election gains, and Treasury yields have returned to more stable levels after a brief surge.

As markets digest Trump’s proposed 60% tariff on China and concerns over rising national debt, many expect Bitcoin to carry a lower risk premium compared to traditional equities. This could position it to outperform other risk-on assets in the coming months.

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Bitcoin’s Bull Run? It’s Here to Stay!

The continued bullishness in Bitcoin could create a “feedback loop,” where rising ETF inflows push BTC prices higher, which in turn attracts more retail investors and institutional buying as market volatility decreases. This cycle could further strengthen Bitcoin’s position and drive even more capital into the cryptocurrency market.

As a result of Donald Trump’s election victory, the cryptocurrency market has experienced a remarkable surge. Bitcoin soared above $76,400, marking a new all-time high, while Ethereum climbed above $2,839 and Solana approached $190. This surge reflects the optimism surrounding Trump’s pro-crypto stance, which is expected to foster a more favorable regulatory environment for digital assets.

With rising optimism and a supportive regulatory environment, the future of Bitcoin and Ethereum looks brighter than ever.