Demand for Bitcoin and altcoin asset investment products peaked last week, and optimism generated by the US elections led to a massive inflow of $2.2 billion. This inflow pushed total inflows year-to-date to a record high of $29.2 billion. According to a new report from CoinShares, this increase is due to investor enthusiasm at the prospect of a Republican victory in the US elections. Investment flows, which remained positive throughout the week, gave way to small-scale outflows as the results of the surveys began to change on Friday, revealing how sensitive crypto asset markets are to political developments in the United States.
Fund inflow in Bitcoin and altcoins draws attention
When looked at regionally, the USA had the largest share in crypto asset investments. The US alone recorded an inflow of $2.2 billion. While this high demand in the USA focused especially on Bitcoin, Germany was also among the noteworthy countries in crypto asset investment and contributed with an inflow of 5.1 million dollars. The report states that political uncertainties in the USA are effective in increasing the interest in crypto assets in the short term. The impact of US elections on crypto assets has been observed in the past. With this year’s elections, the sensitivity of crypto assets to market dynamics was once again confirmed.
In last week’s crypto asset investments, Bitcoin was almost alone on the scene and witnessed a total inflow of $2.2 billion. However, this week, due to the price increase, there was also activity in short positions and an inflow of $ 8.9 million was seen into short Bitcoin funds. This high demand for Bitcoin not only reflected investors’ market bullish expectations, but also attracted short-term investors to the market who wanted to take risks by taking advantage of this enthusiasm. Another crypto asset that attracted attention after Bitcoin was Ethereum.
But Ethereum, unlike Bitcoin, has experienced relatively calm demand, with limited inflows of $9.5 million. The fact that Ethereum does not attract as much interest as Bitcoin indicates that investors’ attention is shifting more to Bitcoin and some altcoins. There is an exit from XRP, Litecoin and ADA.
Solana, Polkadot and ARB; on the rise
When we look at the altcoin market, there is activity other than Bitcoin and Ethereum. Solana, in particular, attracted the attention of investors with an inflow of $5.7 million last week. Solana’s recent technical innovations and user-friendly applications have increased investors’ trust in this platform. On the other hand, projects such as Polkadot and Arbitrum also recorded notable entries this week. Polkadot received an investment of 670 thousand dollars, and Arbitrum received an investment of 200 thousand dollars. The increase in these altcoins reveals that investors are interested not only in mainstream cryptocurrencies, but also in projects that are innovative and offer different functions.
Over the past week, trading volumes in crypto asset markets have also increased significantly. Weekly transaction volume increased by 67 percent and reached 19.2 billion dollars. This figure represents 35 percent of the total transaction volume of Bitcoin (BTC) on reliable exchanges. This increase in trading volumes shows that investors are becoming increasingly active in the market and the excitement brought by the expectations for the US elections is increasing interest in crypto markets.
