30s Summary

Following Donald Trump’s victory in the US presidential elections, $9.3bn worth of ERC-20 stablecoins were invested into crypto exchanges, marking the second largest inflow of its kind. Market intelligence firm CryptoQuant suggests this could herald another surge in the crypto market. Binance received the largest portion of the investment, followed by Coinbase. Historical data suggests large stablecoin inflows often precede price rallies. As a result, industry insiders believe a new era in crypto could be on the horizon. This belief is further bolstered by a surge in demand for Bitcoin, particularly from major investors like BlackRock.

Full Article

After Donald Trump’s victory in the US presidential race and a 25 basis point cut by the Federal Reserve on November 7, we’ve seen a big increase in stablecoin inflows to cryptocurrency exchanges.

Let me break this down for you: following the election results on November 6, a whopping $9.3 billion worth of ERC-20 stablecoins was ploughed into cryptocurrency exchanges, according to market intelligence firm CryptoQuant.

This is the second largest wave of ERC-20 stablecoins since they were first created! Not only that, but as explained by CryptoQuant, if this giant wave sets off a similar trend upwards, we could be in for another huge surge in the cryptocurrency market.

Let’s look at the breakdown of that $9.3 billion. Binance took the biggest slice of the pie with about $4.3 billion, followed closely by Coinbase with about $3.4 billion. Now, if history tells us anything, it’s that large inflows of stablecoins to exchanges often come before price rallies. We saw this during the 2021 bull run; a major influx of stablecoins occurred between September 2020 and February 2021, and BOOM—the prices jumped.

With all this in mind, people involved in cryptocurrency believe that the 2024 US election results signaled a new chapter for the crypto market. QCP Capital, for instance, is confident that Bitcoin’s upward momentum will continue.

Everyone is now keeping an eye on Trump’s proposed 60% tariff on China and concerns about the rising national debt, since these factors could influence the market.

Meanwhile, the Coinbase Premium Index, which tracks the Bitcoin price difference between Coinbase and Binance, hit its highest level since April 14 on November 6.

The good news is that this all indicates a continued upward trend for Bitcoin. Also, the demand for Bitcoin is surging in the US, partially thanks to significant inflows into spot ETFs from giants like BlackRock.

Everyone’s holding their breath now to see how Trump’s crypto stance might shape the market. Meanwhile, US-based Bitcoin ETFs are enjoying some serious inflows, with over $1.38 billion being invested into these funds on November 7, as per SoSoValue’s data.

In short, we’re all waiting for bigger inflows and Bitcoin price growth as we brace ourselves for a new era in crypto under Trump’s presidency.

But remember, investing always comes with risks. Always do your own research before making any investment or trading decision.