Election euphoria drives $2.2 billion in revenue, with Bitcoin the only beneficiary

Excitement around a possible Republican victory spurred $2.2 billion in weekly receipts, pushing year-to-date receipts to a whopping $29.2 billion. That increase, along with rising prices, pushed assets under management above $100 billion. Interestingly, this level was last seen in early June 2024, when AuM reached $102 billion.

As a result, trading volume increased by 67% for the week, totaling $19.2 billion and 35% of all bitcoin trading on trusted exchanges.

The anticipation of the Republican victory drives the massive tickets

According to the latest edition of the Digital Asset Fund Flows Weekly Report, almost all of last week’s inflows went to Bitcoin, which attracted $2.2 billion. Meanwhile, the price spikes generated $8.9 million in short bitcoin investments.

Ethereum received a modest $9.5 million, lagging behind stronger enthusiasm for Bitcoin and Solana, with the latter seeing $5.7 million in new funding. Among other altcoins, Polkadot and Arbitrum recorded inflows of $0.67 million and $0.2 million, respectively.

On the other hand, multi-asset products faced a pullback, with $3.1 million in outflows after recovering the previous week. Following suit, Litecoin and XRP also faced outflows of $0.8 million and $0.1 million, respectively, over the past week.

Bitcoin’s sensitivity to the outcome of the US election

Bitcoin has reacted positively as optimism grows around the possibility of Donald Trump, a self-proclaimed pro-crypto candidate, securing a second term. CryptoPotato also recently reported that traders are making big bets on Trump’s chances of victory. Big crypto investors, in particular, are backing their beliefs with investments tied to the upcoming election.

The Coinshares report also validated that sentiment, revealing that weekly inflows reached $2.2 billion in the U.S., boosted by early-week enthusiasm for Republican election prospects. However, as the polls changed later in the week, Friday’s slight exits underscored Bitcoin’s sensitivity to the results of the US election.

On a more global scale, Germany also recorded a smaller inflow of $5.1 million. Australia and Hong Kong settled in at $2.1 million and $0.7 million respectively over the past week. Canada and Sweden recorded the largest outflows at $24.4 million and $20.3 million respectively, followed by Switzerland at $13.8 million. Brazil also saw a smaller outflow of $0.5 million.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!