Originally published on: November 08, 2024
After Donald Trump’s victory in the US presidential race and a Federal Reserve rate cut, stablecoin inflows into cryptocurrency exchanges have surged significantly. Market intelligence firm CryptoQuant reported that a record $9.3 billion worth of ERC-20 stablecoins were deposited into exchanges following the election results on Nov. 6.
This influx of stablecoins, the second largest since their inception, has traders anticipating a potential price rally in the Bitcoin market. Historically, significant inflows of stablecoins into exchanges have preceded price surges, as seen during the 2021 bull run and earlier this year.
Experts believe that the recent US election results could usher in a new era for the crypto market, with positive momentum expected to continue into 2025. Additionally, market indicators like the Coinbase Premium Index, which tracks the price difference between Coinbase and Binance, suggest a growing demand for Bitcoin in the US market.
Furthermore, substantial inflows into US-based spot Bitcoin ETFs, particularly BlackRock’s IBIT, indicate a strong market sentiment towards Bitcoin. With expectations of continued inflows and price growth, traders are gearing up for a potentially lucrative period in the cryptocurrency market.
As the market anticipates further developments under Trump’s presidency, it is crucial for investors to conduct their own research and make informed decisions when navigating the volatile crypto space. Stay updated on the latest trends and insights to capitalize on investment opportunities and refine your trading strategies.
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