Originally published on: November 08, 2024
As the dust settles on Donald Trump’s victory in the US presidential race and the Federal Reserve’s recent interest rate cut, cryptocurrency exchanges are experiencing a surge in stablecoin inflows. According to data from market intelligence firm CryptoQuant, a whopping $9.3 billion worth of ERC-20 stablecoins have been deposited into exchanges, marking the second-largest influx of its kind.
Binance and Coinbase lead the pack, with $4.3 billion and $3.4 billion, respectively, of the total stablecoin inflows. Historically, such large-scale deposits have foreshadowed significant price rallies in Bitcoin. The 2021 bull run, for example, followed a similar pattern between September 2020 and February 2021.
Market analysts believe that the outcome of the 2024 US election has set the stage for a bullish trend in the crypto market. QCP Capital is confident in Bitcoin’s positive momentum heading into 2025, especially as attention turns to Trump’s proposed tariffs on China and growing fiscal concerns.
The Coinbase Premium Index, which measures the price gap between Coinbase and Binance, spiked to its highest level since April 14, indicating a surge in US demand for Bitcoin. This trend is further supported by significant inflows into spot Bitcoin ETFs, particularly from BlackRock, with over $1.1 billion flowing into its IBIT product.
With expectations of continued inflows and Bitcoin price growth in the near future, traders are gearing up for what could be a new era in the crypto market under Trump’s presidency. As always, readers are advised to conduct their own research and due diligence before making any investment decisions.
