QCP Capital: It is expected that the risk premium of Bitcoin relative to stocks will decrease

On November 8, QCP Capital announced that yesterday, the net inflow of Bitcoin spot ETF reached $1.38 billion, setting a new historical high. This was driven by the optimistic sentiment brought about by Trump's election victory and the widespread expectation of a 25 basis point cut by the Federal Reserve, which together pushed up the price of Bitcoin to $77,000 earlier this morning. However, investors have begun to withdraw some "Trump trades": The dollar has given back most of its gains after the election and bond yields have also fallen back into their recent volatility range after brief sharp fluctuations.
As markets consider Trump's proposal to impose a 60% tariff on China and issues such as rising national debt, it is expected that Bitcoin's risk premium relative to stocks will decrease. This could potentially allow it to outperform other risky assets. The continued bullish sentiment for Bitcoin may also create a feedback loop where an increase in ETF inflows pushes up Bitcoin prices while rising bitcoin prices attract more retail capital and systematic funds due to decreasing volatility.