Is This The Reason Behind Bitcoin’s Price Rally Today?
With just over 20 days until the US presidential election, the race is heading into its decisive phase, and the stakes are high for the crypto industry.
Over the past few days, prediction markets have flipped, placing higher odds on Republican and pro-crypto advocate Donald Trump securing a win compared to his Democratic competitor, Vice President Kamala Harris.
This political shift to Republicans has contributed to significant inflows of digital assets over the past week.
Political Climate Fuels Inflow Ahead of US Elections
According to the latest edition of CoinShares’ “Digital Asset Fund Flows Weekly Report,” investors funneled $407 million into digital asset products, seemingly prioritizing the US political climate, particularly the upcoming elections, over monetary policy concerns.
Despite stronger-than-expected economic reports, outflows continued until a key turning point came with the US vice presidential debate. It coincided with a shift in polling toward the Republican Party, which is seen as more favorable to digital assets.
This political development led to an immediate surge in both inflows and asset prices. As a result, the US accounted for $406 million of the inflows, with Canada being the only other notable contributor, recording $4.8 million. Bitcoin’s price also followed with a rally above $66,000.
Meanwhile, Australia and Germany also recorded minor inflows of $2 million and $0.8 million respectively over the past week.
Ethereum Emerges as Outlier
Bitcoin capitalized on recent political events, bringing in $419 million in inflows. In contrast, short-Bitcoin investment products saw outflows amounting to $6.3 million.
Multi-asset investment products, on the other hand, extended their streak with inflows for the 17th consecutive week, though only reaching a modest $1.5 million. Next up were XRP and Solana, attracting $1.1 million and $0.6 million, respectively.
Tron and Litecoin saw smaller inflows of $0.2 million and $0.1 million during the same period. Ethereum, however, stood out as an outlier, continuing its trend of outflows with $9.8 million in the last week.
Blockchain equity ETFs experienced one of their biggest inflows this year, bringing in a total of $34 million, which is likely a reaction to the recent surge in Bitcoin prices.
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