Crypto Investment Products Earned $2.2 Billion Last Week
Bitcoin Dominates Inflows Amid Trump’s Victory in US Election
Last week, cryptocurrency market investors faced significant risks, as indicated by a massive influx of $2.2 billion. According to CoinShares data, this was the largest increase since July, highlighting the reemergence of bullish sentiment in the past few days.
Bitcoin (BTC) accounted for nearly 99% of the weekly inflows, generating $2.13 billion in revenue and becoming the focal point of investor interest. The impact of the substantial capital inflow was also evident in the price chart, as the world’s largest digital asset surged by nearly 10%, rising from $624,000 to over $69,000.
James Butterfill, from CoinShares, stated that the market’s renewed optimism can be attributed to the following factors: Donald Trump’s victory in the US presidential election. He said, “We believe this newfound optimism stems from increasing expectations of a Republican win in the upcoming US elections, as people generally perceive them to be more supportive of digital assets. This, in turn, has led to positive price momentum.”
In terms of background, Trump’s chances of winning, according to the prediction website Polymarket, exceeded 60% for the first time since July last week. As of writing, the index stands at 64%, leading Kamala Harris at 34% with a 28-point lead.
According to analyst Min Jung from Presto Research, this momentum could continue in the coming weeks under two scenarios. “If Trump’s dominance persists and the Federal Reserve signals a more accommodative stance, we may see new momentum for Bitcoin in the weeks following these events.”
Furthermore, the strong demand for US spot BTC ETFs will also push the net assets of these products to new highs, with their total assets under management (AUM) exceeding $66.1 billion.
Other altcoins have also shown new appeal, with Ethereum (ETH) recording $57.5 million and Solana (SOL) mining $2.4 million.
With only about two weeks left until the US election, will the cryptocurrency market’s bull run continue?
Well, QCP Capital, a cryptocurrency trading company, citing options data, believes that the upward trend may persist. It stated, “Markets brace for the volatile #Election: While #BTC trades 8% below its peak, it still leans bullish, but the S&P 500 index may see a 1.8% pre-election pullback before using put options for hedging.”
This indicates that cryptocurrency investors are optimistic about the upside potential (buying call options), while the US stock market is concerned about a correction (buying put options).