Bitcoin Touches $77,000 as Spot ETFs Attract Record $1.4 Billion

The crypto market rallied for a fifth consecutive day, buoyed by Donald Trump’s election win and the Federal Reserve’s latest interest rate cut.

Bitcoin (BTC) climbed 1.3% to a new all-time high of $77,200, while Ethereum (ETH) rose 4% to $2,975. Solana (SOL) and Polkadot (DOT) gained 3% and 5%, respectively.

The surge comes amid broader risk-on sentiment, with investors cheering the Fed’s decision to lower its benchmark interest rate by 25 basis points to a target range of 4.50% and 4.75%. This marks the Fed's second consecutive cut.

On Thursday, the Federal Open Market Committee (FOMC) unanimously approved a quarter-percent cut, signaling a shift towards a more neutral policy to sustain economic growth while keeping inflation in check.

“This further recalibration of our policy stance will help maintain the strength of the economy and the labor market while continuing to enable further progress on inflation,” Fed Chair Jerome Powell said during the post-meeting press conference.

Powell also addressed speculation about his tenure, stating that he will not step down even if requested by the president-elect.

“Such a cut marks the second step in the journey back to a more neutral policy setting, albeit a more modest one than the ‘jumbo’ 50bp cut seen last time around, and comes as policymakers continue to normalise policy, in an attempt to stick the ‘soft landing’ which the economy currently appears on course for,” said Michael Brown, senior research strategist at Pepperstone.

Bitcoin ETFs Record Highest Ever Daily Inflows

Bitcoin’s rally was further fueled by record inflows into spot Bitcoin exchange-traded funds (ETFs).

Data from Farside Investors revealed that Thursday marked the highest single-day inflow for Bitcoin ETFs, with a staggering $1.37 billion pouring into these funds, eclipsing the previous record of $1 billion set on March 12.

BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, pulling in $1.11 billion, followed by Fidelity Wise Origin Bitcoin Fund (FBTC), which recorded $191 million of inflows.

The surge in institutional demand underscores growing confidence in Bitcoin as a store of value and a hedge against macroeconomic uncertainty.

Ryan Lee, Chief Analyst at Bitget Research, highlighted the bullish sentiment among institutional investors.

“Trump’s election could benefit BTC, but his policy direction may also increase inflation in the U.S., with interest rates potentially staying above 3.5% over the medium to long term,” said Lee. “With the Republican sweep in Congress, there may be favorable developments in the regulatory framework for the crypto market, which would be a long-term positive for the industry.”

Crypto liquidations totaled $233 million over the past 24 hours, impacting 78,076 traders, per data from CoinGlass. Notably, 58% of liquidations were short positions, reflecting the market's strong upward momentum.