After the US election, almost 2 billion dollars of Crypto investment came in

Post-Election Momentum Drives Crypto Investment Inflows to $1.98 Billion


Crypto investment surged to $1.98 billion in a post-election surge as markets remained buoyant over Donald Trump's victory. Year-to-date (YTD) revenue totaled an unprecedented five-week run of $31.3 billion.

The continued high in bitcoin prices following the US presidential results is a key factor in this post-election investment boom.

Almost $2 billion in crypto since the US election.

The positive flow of crypto investment in digital assets increased the confidence of investors in digital assets, with the transaction volume growing to 20 billion USD. Similarly, worldwide AuM (AuM) rose to $116 billion.

Bitcoin ended the post-election rally with gains of nearly $1.8 billion. Silver price movements have supported this against key digital assets. For starters, Bitcoin hit its prime immediately after the US presidential election. The election victory of Donald Trump, bringing a conservative economic stance to the White House, seems to have strengthened Bitcoin's appeal among risk-averse investors.

coinbase

“The combination of a bullish macro environment and seismic shifts in the US political system may be the cause of such a supportive investor sentiment,” reads a recent CoinShares report.

Crypto investment earnings. Source: CoinShares

The broader shift in thinking reflects a renewed interest in assets outside of traditional finance (TradFi). This is particularly in response to inflation and interest rate cuts by the US Federal Reserve. Since September, the Federal Reserve has adopted a dovish approach, and Bitcoin has attracted more than $9 billion in inflows.

Market optimism over Trump's economic policies has also led to a risk-averse shift. Interest in Bitcoin and other high-risk assets in the cryptocurrency space has expanded. In particular, blockchain-related stocks saw $61 million in revenue. This interest in blockchain equities, which represent shares in companies involved in the blockchain and cryptocurrency sectors, reflects investors' desire for more diversified exposure to the growing crypto market.

With Trump back in office, many analysts expect the administration to be more amenable to financial innovation. This will spur further development of blockchain-based financial services and products.

“DeFi gets better regulatory treatment – ​​no more harassment and even enables things like payment switches or network-based sharding,” said Pahug, a prominent voice on social media X.

The post-election period has seen the foray into Bitcoin ETFs (exchange-traded funds) adding further impetus to the overall growth of financial engineering. Spot Bitcoin ETFs that offer direct exposure to BTC have experienced high returns. This is because investors are looking for regulated ways to invest in the pioneering crypto.

Risk-averse ETFs, which typically see growth in more adventurous market conditions, have similarly benefited from the election results. Trump's victory has bolstered these funds, which aim for higher returns in volatile environments. The flow of investment into these EFAs shows the risk exposure among investors.

As mainstream investors gain greater access to the digital asset market, crypto ETFs have become a cornerstone of Bitcoin's recent rise. The earnings suggest that confidence in Bitcoin's long-term viability is high. There is a growing belief that BTC can perform as a store of value in times of economic uncertainty.

This post-election season, characterized by dramatic capital outflows, marks an inflection point for cryptocurrency markets. The return of conservative governance coupled with supportive macroeconomic policies is fostering a risk-tolerant environment conducive to digital asset growth.

Record-breaking inflows into Bitcoin, Ethereum, altcoins and related ETFs show investors are willing to seek alternative assets that provide protection against traditional market volatility.

BTC price performance. Source: BeInCrypto
BTC price performance. Source: BeInCrypto

At the time of writing, Bitcoin is trading at $82,376, up nearly 4% since the opening of Monday's session. As the king of crypto looks poised for more gains, positive US economic data this week could send BTC into uncharted territory.

“We expect a slightly higher CPI reading; however, as the Fed is already moving towards rate cuts, we expect Bitcoin to remain resilient. Retail sales may show strength driven by Amazon's recent sales event, indicating a strong economy that could further support crypto markets. Overall, the macro Data should point to strong economic growth, which Bitcoin can see very well,” 10x Research founder and CEO Markus Thielen told BeinCrypto.

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