Is this the reason for Bitcoin’s price recovery today?

With just over 20 days until the US presidential election, the race is entering its decisive phase and the stakes are high for the crypto industry.

Over the past few days, the prediction markets have shifted, placing higher odds of Republican and pro-crypto attorney Donald Trump pulling off a victory compared to his Democratic challenger, Vice President Kamala Harris.

This political shift towards the Republicans has contributed to significant inflows of digital assets over the past week.

Political climate drives entry ahead of US election

According to the latest edition of CoinShares’ “Weekly Report of Digital Asset Fund Flows”, investors poured $407 million into digital asset products, apparently prioritizing the US political climate, especially the upcoming elections, over monetary policy concerns.

Despite stronger-than-expected economic reports, outflows continued until a key turning point came with the US vice-presidential debate. It coincided with a shift in polls towards the Republican Party, which is seen as more favorable to digital assets.

This political development led to an immediate increase in both inflows and asset prices. As a result, the US accounted for $406 million of inflows, with Canada the only other notable contributor, accounting for $4.8 million. Bitcoin price also followed with a rally above $66,000.

Meanwhile, Australia and Germany also recorded inflows of less than $2 million and $0.8 million respectively over the past week.

Ethereum is listed as an Outlier

Bitcoin took advantage of recent political events, bringing in $419 million in inflows. In contrast, short Bitcoin investment products recorded outflows of $6.3 million.

Multi-asset investment products, on the other hand, extended their inflow streak for a 17th consecutive week, although they only reached a modest $1.5 million. Next were XRP and Solana, which attracted $1.1 million and $0.6 million, respectively.

Tron and Litecoin saw inflows of less than $0.2 million and $0.1 million during the same period. Ethereum, however, stood out as the outlier, continuing its trend of outflows with $9.8 billion in the past week.

Blockchain equity ETFs saw one of their biggest inflows this year, totaling $34 million, which is likely a reaction to the recent surge in Bitcoin prices.

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