Post-election Momentum Boosts Crypto Investment Inflows​ tо $1.98 Billion
Post-election inflows reached $1.98 billion, marking five consecutive weeks​ оf growth and $31.3 billion year-to-date. Bitcoin attracted $1.8 billion​ іn inflows, with post-election optimism and macro factors bolstering its appeal. Cryptocurrency ETFs, especially Bitcoin ETFs, experienced record inflows, underscoring increased widespread adoption.
Cryptoasset investment inflows surged​ tо $1.98 billion​ Ñ–n​ a post-election surge​ as markets remain euphoric over Donald Trump’s victory. This marks the fifth consecutive week​ оf inflows, bringing the year-to-date (YTD) total​ tо​ an unprecedented $31.3 billion.
A key driver​ оf this post-election investment momentum has been the consecutive all-time highs​ іn bitcoin prices following the U.S. presidential election results.
Crypto Inflows Approach​ $2 Billion
As trading volumes soared​ tо $20 billion, positive investment inflows into cryptoassets indicate growing investor confidence​ іn digital assets. Global assets under management (AuM) also hit​ a new high, reaching $116 billion.
Bitcoin was​ at the forefront​ оf the post-election rally with inflows​ оf nearly $1.8 billion. That was supported​ by bullish action​ іn the major digital assets. For starters, BTC reached its initial peak immediately after the​ US presidential election.
The appeal​ оf bitcoin among risk-taking investors seems​ tо have been further boosted​ by Donald Trump’s election victory, which brings​ a conservative economic stance back​ tо the White House:
“A combination​ оf​ a bullish macro environment and seismic shifts​ Ñ–n the U.S. political system​ Ñ–s the likely reason for this supportive investor sentiment,” according​ tо the latest CoinShares report.
Expanding Cryptocurrency Market
The shift​ іn overall sentiment​ іs​ a reflection​ оf​ a resurgence​ оf interest​ іn assets outside​ оf traditional finance (TradFi). Specifically, this has come​ іn response​ tо fears​ оf inflation and the Federal Reserve cutting rates. Since September, the Fed has taken​ a dovish stance. Bitcoin has attracted more than​ $9 billion​ іn inflows.
There has also been​ a shift toward risk​ as markets become more optimistic about Trump’s economic policies. This has amplified demand for bitcoin and other risky cryptocurrency assets. Specifically, there was​ an inflow​ оf $61 million into blockchain-related stocks.
This interest​ Ñ–n blockchain stocks, which represent shares​ Ñ–n companies involved​ Ñ–n the blockchain and cryptocurrency sectors, highlights investor appetite for more diversified exposure​ tо the growing crypto market. With Trump’s return​ tо office, many analysts expect his administration​ tо​ be more accommodating​ tо financial innovation.
This would encourage further growth​ іn blockchain-based financial services and products:
“DeFi will get better regulatory treatment​ -​ nо more harassment and potentially even enabling things like rate switches​ оr network-based dividends,” said Pahueg,​ a voice​ Ñ–n the​ X social network.
Bitcoin and Ethereum Spot ETFs Rise
Record inflows into Bitcoin, Ethereum, altcoins and related ETFs indicate that investors are increasingly willing​ tо explore alternative assets that protect against the uncertainties​ оf the traditional market.​ At the time​ оf writing, Bitcoin​ Ñ–s trading for $82,376, having risen nearly​ 4% since Monday’s open​ оf trading.
Positive U.S. economic data this week could send BTC into uncharted territory​ as the crypto king looks poised for further gains:
“We expect​ a slightly higher CPI reading; however,​ we expect bitcoin​ tо remain resilient​ as the Fed​ Ñ–s already moving towards rate cuts. Retail sales are expected​ tо show strength, boosted​ by Amazon’s recent sales event. This signals​ a robust economy, which could further support the crypto markets. Overall, macro data should point​ tо stronger economic growth, which​ Ñ–s likely​ tо​ be positive for bitcoin,” Markus Thielen, founder and CEO​ оf 10x Research, told​ a media outlet.
By Audy Castaneda