Crypto investment income reached $901 million amid US election hype

Crypto investment reached $901 million last week, which is a big drop from last week's positive flows. However, as the US election nears, the political environment is intensifying, and the series has come in.

Among digital assets, Bitcoin grabbed all the attention, bringing in about $920 million in revenue. In particular, this change did not extend to short-Bitcoin positions, which experienced a total of 1.3 million dollars in small flows. This reflects investors' confidence in Bitcoin's upside.

Political momentum boosts Crypto investment earnings

In high anticipation of possible political changes in the US, digital asset investment products continue to have a positive flow. The latest CoinShares report shows an inflow of $901 million into these assets.

With these numbers, October is effectively the fourth-highest month in terms of revenue, bringing this year's total revenue to $27 billion. Notably, this is nearly three times the high of $10.5 billion set for 2021.

As the election cycle in the US intensifies, the traction reflects the enthusiasm surrounding cryptocurrency investments. In particular, most of the revenue amounting to 906 million dollars this month came from the US, which led to a significant difference with other regions.

Read more: How to buy Bitcoin (BTC) and everything you need to know

CoinShares researcher James Butterfill describes the impact of domestic political developments in the US on the crypto market. In particular, the researcher highlighted the politically oriented issues that are driving the current congestion, especially the upcoming 2024 presidential election.

“We believe that current Bitcoin prices and flows have a significant impact on US politics, with recent increases in inflows likely to be related to Republicans' poll gains,” reads an article in the report.

The general idea is that the Republican Party's political divide could change regulatory and tax policies in a way that could benefit the digital assets space. This correlation has been seen in the past two weeks, with crypto investment flows rising to $2.2 billion in the week ending October 18 and $406 million in the week ending October 11, according to BeCrypto.

The intensified interest in cryptocurrency coincides with recent electoral swings for Republicans. Swing states, which historically play an important role in determining election results, have influenced investor sentiment. According to data from Polymarket Forecast Market, Republicans are showing strength in these key states on the balance of power measures, a trend that will further strengthen the flow of crypto investment.

Similarly, Donald Trump currently leads the prediction market, with 66.2% of the polls ahead of Democratic presidential front-runner Kamala Harris at 33.7%. Meanwhile, the polls show Americans are just one week away from the US election.

With potential political change on the horizon, the cryptocurrency market is poised to attract continued interest. Investors are watching the US elections closely.

Read more: How Blockchain Could Be Used for Voting in 2024?

Of note, beyond showing a resurgence in Bitcoin, these ongoing series of crypto investment flows highlight how political developments will shape the crypto playing field in the coming days. As political sentiment runs high, investors see bitcoin as a safe hedge against economic uncertainty.