- Crypto investment products generated $2.2 billion inflows last week.
- Bitcoin dominated the inflows amid increased chances of Trump winning the US elections.
Last week, investors in the crypto market were heavily in risk mode, as evidenced by a whopping $2.2 billion inflow.
According to CoinShares factsThis was the biggest increase since July, underscoring the renewed bullish sentiment in recent days.
Trump’s impact on BTC
Bitcoin [BTC] dominated nearly 99% of weekly inflows and raked in $2.13 billion, making it the peak of investor interest.
The impact of the massive inflows was also clearly visible on the price charts, as the world’s largest digital asset rose by almost 10%, from $62.4K to over $69K.
Source: CoinShares
According to James Butterfill of CoinShares, the renewed market optimism was linked to increasing chances of an economic crisis Donald Trump winning the US presidential election. He said,
“We believe this renewed optimism stems from growing expectations of a Republican victory in the upcoming US elections, which are generally seen as more supportive of digital assets. This in turn has led to positive price momentum.”
For context: Trump’s odds of winning on the prediction site last week Polymarkt reached the 60% limit for the first time since July.
At press time it was 64%, a 28-point lead over Kamala Harris’ 34%.
Source: Polymarkt
According to analyst Min Jung of Presto Research, the momentum could continue in the coming weeks under two circumstances.
“If Trump’s dominance continues and the Fed takes a more dovish stance, we could see renewed momentum for Bitcoin in the weeks following these events.”
That said, strong demand from US spot BTC ETFs also pushed the products to a new high in net assets. Total net assets under management (AUM) exceeded $66.1 billion.
Source: Sosowaarde
Other altcoins also showed renewed traction, with Ethereum [ETH] registering $57.5 million and Solana [SOL] Tapping $2.4 million.
With only about two weeks until the US elections, will the crypto markets’ bullish streak continue?
Well, crypto trading firm QCP Capital was confident that the uptrend could extend, citing options data. It declared,
“Markets are bracing for a volatile #election: while #BTC leans toward bullish calls despite trading 8% below its peak, the S&P 500 hedges with protection ahead of a potential 1.8% swing after the elections.”
It meant that crypto investors were optimistic about the upside potential (buying call options), while the US stock market feared a pullback (buying put options).