Why Is Crypto Market Up Today: What’s Fueling the Growth?

Why Is Crypto Market Up Today: Exploring Factors Behind the Surge

Bitcoin (BTC) surged to a new all-time high of $76,900 after the Federal Reserve implemented a 25 basis point interest rate cut. This move set the target range between 4.5% and 4.75%, reinforcing a monetary policy shift that historically supports risk-on assets. The rate adjustment marked a significant turning point for both traditional financial markets and the digital asset space.

Record-Breaking Inflows for Bitcoin ETFs

U.S.-based exchange-traded funds (ETFs) that focus on Bitcoin (BTC-USD) recorded their largest daily net inflow of $1.38 billion. This surge was fueled by President-elect Donald Trump’s positive stance on the digital-asset industry and his commitment to introducing supportive regulations. BlackRock’s IBIT led the way with over $1.1 billion in net inflows, achieving its highest single-day inflow since its launch in January. Total cumulative inflows across all Bitcoin-focused ETFs surpassed the $25 billion mark for the first time, with none of the twelve ETFs reporting net outflows.

Ether ETFs See Renewed Interest

Ether (ETH) ETFs experienced net inflows of $78 million, driven by renewed optimism in the decentralized finance (DeFi) sector following Trump’s victory. On Thursday, ETH's price rose by over 10% as expectations for pro-crypto policies and deregulation under the new administration bolstered investor confidence in the asset.

Block’s Strategic Shift: Pulling Back on TIDAL and TBD

Jack Dorsey's Block announced its plans to scale back its investment in TIDAL, the music streaming platform once owned by Jay-Z, as revealed in a shareholder letter. The company is also shutting down TBD, its Bitcoin-focused initiative aimed at building a decentralized internet known as "Web5." This strategic move allows Block to redirect resources toward Bitcoin mining operations and its cryptocurrency wallet.

Implications of Trump’s Second Term for the Crypto Sector

The 2024 U.S. presidential election has brought a significant shift in the outlook for cryptocurrency policies, as Donald Trump prepares for his second term in office. With the Republican Party securing control of the Senate and a potential majority in the House of Representatives, crypto advocates, including Coinbase CEO Brian Armstrong, have expressed optimism about the future regulatory environment for digital assets.

Bitcoin and Ethereum Options Expiry Details

According to Deribit data, approximately 48,794 Bitcoin options contracts valued at $3.7 billion are set to expire on November 8. These contracts have a put-to-call ratio of 0.72, with a maximum pain point at $69,000. Similarly, Ethereum options are approaching expiration, involving 294,380 contracts worth $854.88 million, with a put-to-call ratio of 0.65 and a maximum pain point at $2,500.