- Crypto funding merchandise netted $2.2 billion in inflows final week.
- Bitcoin dominated the inflows amid elevated possibilities of Trump profitable the U.S. elections.
Final week, crypto market buyers had been closely in risk-on mode, as famous by a whopping $2.2 billion inflows.
Based on CoinShares data, this was the biggest surge since July, underscoring a renewed bullish sentiment witnessed up to now few days.
Trump’s impression on BTC
Bitcoin [BTC] dominated almost 99% of the weekly inflows, raking in $2.13 billion, making it the spotlight of buyers’ curiosity.
The impression of the large inflows was additionally evident on the worth charts, because the world’s largest digital asset rallied almost 10%, rising from $62.4K to over $69K.
Supply: CoinShares
Based on CoinShares’ James Butterfill, the renewed market optimism was linked to growing odds of Donald Trump profitable the US presidential elections. He stated,
“We consider this renewed optimism stems from rising expectations of a Republican victory within the upcoming US elections, as they’re usually seen as extra supportive of digital property. This, in flip, has led to constructive value momentum.”
For context, final week, Trump’s odds of profitable on the prediction website Polymarket topped 60% for the primary time since July.
It stood at 64% at press time, a 28-point lead towards Kamala Harris’s 34%.
Supply: Polymarket
Based on Presto Analysis’s analyst Min Jung, the momentum might proceed within the coming weeks underneath two circumstances.
“If Trump’s dominance continues and the Fed alerts a extra dovish stance, we might see renewed momentum for Bitcoin within the weeks following these occasions.”
That stated, sturdy demand from US spot BTC ETFs additionally pushed the merchandise to a brand new excessive in web property held. It crossed $66.1 billion in whole web property underneath administration (AUM).
Supply: Soso Worth
Different altcoins additionally confirmed renewed traction, with Ethereum [ETH] logging $57.5 million and Solana [SOL] tapping $2.4 million.
With solely about two weeks to the US elections, will the bullish streak within the crypto markets proceed?
Nicely, crypto buying and selling agency QCP Capital was assured that the uptrend might lengthen, citing choices knowledge. It stated,
“Markets are bracing for a unstable #Election: Whereas #BTC skews in the direction of bullish calls regardless of buying and selling 8% under its peak, the S&P 500 hedges with put safety forward of a possible 1.8% post-election swing.”
It meant that crypto buyers had been optimistic about upside potential (shopping for name choices) whereas the US inventory market feared pullback (shopping for put choices).