Key Points
- Crypto investment products saw $2.2 billion in inflows last week, with Bitcoin dominating.
- The bullish market sentiment is linked to increasing odds of Trump winning the US elections.
Crypto investment products experienced a surge of $2.2 billion inflows last week, a significant increase that underscores a renewed bullish sentiment in the market.
Data from CoinShares shows this was the largest surge since July, with Bitcoin accounting for nearly 99% of the weekly inflows.
Trump’s Potential Impact on BTC
The massive inflows and resulting impact on price charts highlight Bitcoin as the primary focus of investors’ interest. The world’s largest digital asset rallied nearly 10%, rising from $62.4K to over $69K.
CoinShares’ James Butterfill attributes this renewed market optimism to the increasing likelihood of Donald Trump winning the US presidential elections.
Last week, Trump’s chances of winning on the prediction site Polymarket exceeded 60% for the first time since July, standing at 64% at the time of writing.
Future Predictions
Analyst Min Jung of Presto Research suggests the momentum could continue under two conditions: if Trump’s dominance continues and if the Federal Reserve signals a more dovish stance.
In addition to Bitcoin, other altcoins such as Ethereum also showed renewed traction, logging $57.5 million.
Crypto trading firm QCP Capital expresses confidence that the bullish trend could extend, citing options data. They note that while crypto investors are optimistic about upside potential, the US stock market is preparing for a potential pullback.