Investment in exchange traded funds (ETFs) linked to bitcoin and other cryptocurrencies is once again gaining momentum. Last week, heavy investment was seen in bitcoin ETFs, a major reason for which is believed to be former US President Donald Trump’s threat to remove Federal Reserve Chairman Jerome Powell.
Table of Contents
- Investment of More Than $100 Million Returned
- Donald Trump’s Threat Made Headlines
- Strength in Bitcoin Price
- Balance Between Political Rhetoric and Investment
- Conclusion
Investment of more than $100 million returned
According to data from crypto analytics website CoinShares, a total net inflow of $103 million was recorded in bitcoin-based ETFs last week. This is believed to be related to the growing confidence among investors and Trump’s recent political rhetoric. Earlier, these funds had registered a decline for two consecutive weeks.
Donald Trump's threat made headlines
Donald Trump has recently indicated that if he is re-elected president, he can remove Fed Chairman Jerome Powell from his post. Trump believes that Powell’s monetary policies are harmful to the country’s economic condition. After this statement of Trump, there has been a stir in the stock market and crypto market.
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Strength in bitcoin price
Along with the return of investment in the market, the price of bitcoin has also seen an improvement. Bitcoin is currently trading above $70,000, and analysts believe that Trump’s pro-crypto stance may further boost its price. The return of investment in ETFs is a sign of increasing investor confidence.
Balance between political rhetoric and investment
Experts believe that Trump’s talk of removing Powell may be a political strategy, but it has affected the financial market. The crypto industry did not get much support during Trump’s previous tenure, but now he has made cryptocurrency an important issue.
Conclusion
The withdrawal of investment in Bitcoin ETFs and signs of political interference have given rise to a new debate in the crypto market. It will be interesting to see in the coming weeks whether Donald Trump actually brings about a change in the leadership of the Federal Reserve and whether this provides stability and support to the crypto industry.
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