Donald Trump’s US Election Lead Drives $2.2B Crypto Inflows
Digital asset investment products witnessed a surge in inflows, reaching $2.2 billion last week, the largest since July 2024. This increase has been attributed to the possibility of a Republican win led by Donald Trump in the upcoming US election.
The U.S. inflows reached $2.3 billion, while other regions experienced minor outflows, which may have been due to profit-taking activities outside the U.S.
Crypto Markets Rally on Donald Trump 60% Odds, Adds $2.2 Billion Inflows
Donald Trump currently leads with 62.1% odds against Harris’s 37.8% in the upcoming US election. This growing confidence in a Republican victory has driven optimism within the crypto market. Consequently, the market has seen a surge to $2.2 billion inflows. The recent rally marks the largest inflow since July, with traders expecting favorable regulatory conditions under a potential Trump administration.
Investors are increasingly betting on the likelihood of more crypto-friendly policies, with Donald Trump perceived as supportive of digital assets. Most recent Polymarket data shows Donald Trump leading with 62.1%, a 2.1% increase, while Kamala Harris trails with 37.8%, dropping by 2.3%.
In addition, Bitcoin investment products were the primary beneficiaries of these inflows, adding $2.1 billion to the total. The increase in demand is attributed to both rising optimism in Donald Trump’s election lead and BTC price appreciation. Similarly, Bitcoin funds saw significant activity, while short-Bitcoin products also gained $12 million in inflows, the largest since March.
Ethereum-based products followed closely, adding $58 million in inflows, further underscoring the broader market enthusiasm linked to the US election.
Other altcoins like Solana and Litecoin also witnessed positive inflows, with $2.4 million and $1.7 million respectively. However, multi-asset products, which usually cater to more diversified investments, saw $5.3 million in outflows, ending a 17-week streak of inflows.
Polarized Regional Inflows and Outflows
While the U.S. market experienced significant inflows of $2.3 billion, the situation in other regions was markedly different. Countries such as Canada, Sweden, and Switzerland witnessed net outflows of $19.9 million, $18.2 million, and $14.9 million, respectively. These outflows are speculated to result from profit-taking activities following recent price appreciation.
In addition, billionaire Mark Cuban recently criticized Donald Trump’s campaign, suggesting that it has become more about Elon Musk than the former president himself. Cuban’s comments reflect the increasing role of Musk, a prominent Trump supporter, in shaping the Republican’s 2024 bid.
Cuban also pointed out that the Polymarket odds may be unreliable. He claimed much of the betting activity on the platform comes from foreign investors rather than Americans.
These criticisms of Elon Musk’s involvement in Donald Trump’s campaign come even as the Tesla CEO recently mentioned XRP at a Pennsylvania rally. When asked about XRP Ledger and its potential adoption by financial institutions, Musk stayed neutral while reaffirming his support for the broader crypto market.
The post Donald Trump’s US Election Lead Drives $2.2B Crypto Inflows appeared first on CoinGape.
