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What Happened to Bitcoin and Ethereum ETFs After Trump Took Office?
Donald Trump officially assumed office as the 47th President of the United States, marking a significant political shift that seemingly influenced the cryptocurrency market, particularly Bitcoin and Ethereum ETFs.
In early January, spot Bitcoin ETFs experienced a challenging three-day stretch:
January 10: Outflows of $149.4 million
January 13: Outflows of $284.1 million
January 14: Outflows of $209.8 million
However, investor sentiment quickly shifted following Trump's inauguration. Over the next three business days, Bitcoin ETFs experienced a massive reversal:
Inflows of $755.1 million
Inflows of $626.1 million
Inflows of $1.072 billion
This turnaround not only erased the earlier losses but also demonstrated renewed investor confidence in the cryptocurrency market amid the changing political landscape.
Key Takeaways:
1. Political transitions can significantly impact market sentiment, especially in emerging asset classes like cryptocurrency ETFs.
2. The strong recovery in inflows suggests that institutional and retail investors see long-term potential despite short-term market jitters.
#VINE Surge – Do you hold it?
This dramatic shift underscores how political and macroeconomic developments can shape market dynamics for digital assets.
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