News Report:
Cryptocurrency Investment Products Earned $2.2 Billion Net Profit Last Week
Bitcoin Dominates Fund Inflows as Trump’s Chances of Winning the US Election Increase
Last week, cryptocurrency market investors faced significant risks, as indicated by a substantial inflow of $2.2 billion. According to CoinShares data, this was the largest increase since July, highlighting the reemergence of bullish sentiment in the past few days.
The impact of Trump on BTC
Bitcoin (BTC) accounted for almost 99% of the weekly inflows, earning $2.13 billion and becoming the highlight of investor interest. The effect of the influx of a large amount of capital is also evident in the price chart, as the world’s largest digital asset surged nearly 10% from $624,000 to over $69,000.
James Butterfill from CoinShares stated that the market’s renewed optimism is attributed to the following factors:
Donald Trump winning the US presidential election. He said, “We believe this newfound optimism stems from increasing expectations of the Republican party’s victory in the upcoming US elections, as people generally perceive them to be more supportive of digital assets. This, in turn, has led to positive price momentum.”
In terms of background, last week, Trump’s chances of winning, according to prediction website Polymarket, surpassed 60% for the first time since July. At the time of writing, the index was at 64%, leading Kamala Harris by 28 points, who had 34%.
According to analyst Min Jung from Presto Research, this momentum may continue in the coming weeks under two circumstances. “If Trump’s dominance continues and the Federal Reserve signals a more accommodative stance, we may see new momentum for Bitcoin in the weeks following these events.”
Furthermore, the strong demand for the US spot BTC ETF has also pushed the net assets of these products to new highs, surpassing $66.1 billion in total AUM.
Other altcoins have also shown new attractions, with Ethereum (ETH) recording $57.5 million and Solana (SOL) mining $2.4 million.
With only about two weeks left until the US election, will the bull market in the cryptocurrency market continue?
Well, cryptocurrency trading company QCP Capital, citing options data, believes that the upward trend may continue. It stated, “The market is preparing for the volatile #Election: While the trading price of #BTC is 8% lower than its peak, it still tends to be bullish, but the S&P 500 index may experience a 1.8% fluctuation after the election, so hedging with bearish options is used.”
This means that cryptocurrency investors are optimistic about the upside potential (buying call options), while the US stock market is concerned about a correction (buying put options).
