Global Cryptocurrency funds managed by financial giants such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares recorded net inflows of $2.18 billion last week, bringing the annual total to a record $29.2 billion, according to CoinShares.
Euphoria around a possible Republican victory in the upcoming US elections has been a key driver behind this increase, according to CoinShares head of research James Butterfill.
Bitcoin-y-volatilidad-en-las-predicciones”>Electoral impact on Bitcoin and volatility in predictions
Recent polls favoring a possible Republican victory boosted capital inflows earlier in the week, although smaller outflows on Friday suggest Bitcoin’s sensitivity to election results.
Combined with Bitcoin’s price appreciation in recent months, the total value of assets under management of these funds reached $100 billion for the second time, matching June’s peak of $102 billion. In parallel, weekly trading volume rose 67%, reaching $19.2 billion and representing 35% of Bitcoin trading on trusted platforms, Butterfill noted.
Weekly flow of crypto assets. Source: CoinShares
The price of Bitcoin has increased more than 30% from a low of $52,600 in early September, reaching $68,818. However, it recently fell 7% from $73,500 on October 29 due to the convergence in the probabilities of Donald Trump and Kamala Harris on the decentralized prediction platform Polymarket.
Projections: Bitcoin facing possible electoral scenarios
Analysts at research and brokerage firm Bernstein reaffirmed that they expect Bitcoin to surpass its all-time highs of nearly $74,000 and reach between $80,000 and $90,000 in the event of a Trump presidential victory. However, they warn that a Harris victory could send bitcoin down to $50,000 before a possible recovery.
US dominance in capital inflows and trend in Bitcoin products
Most of last week’s net inflows came from US-based funds, which added $2.23 billion. In contrast, investment products in Canada, Germany and Switzerland experienced net outflows of $24.4 million, $20.3 million and $13.8 million, respectively.
Bitcoin-based products were the biggest beneficiaries, accounting for $2.16 billion in weekly net inflows globally. US spot Bitcoin ETFs recorded inflows of $2.22 billion, accompanied by additional inflows of $8.9 million into short-term Bitcoin products.
Meanwhile, Ethereum-based investment products also saw net inflows of $9.5 million last week, although according to Butterfill, this “stands in stark contrast to the optimism shown in Bitcoin and Solana.”
Conclusion: Bitcoin benefits from uncertainty and expectations of changes in the US.
In a context of high volatility and electoral expectations, Bitcoin emerges as a strong bet for investors, especially in the US. The growing institutional interest and expectations of future price movements underline the attractiveness of Bitcoin as a refuge in a political scenario uncertain.
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