In the aftermath of the US Election there has been an increase in exchange activity, particularly on platforms like Coinbase and Binance.
These exchanges led in trading volumes and inflows, reflecting a surge in investor interest and market liquidity with Binance and Coinbase experiencing the highest inflows of Bitcoin and USDT among all exchanges.
Notably, Binance saw a substantial influx of USDT, totaling $7.7 Billion during the US election week. This was a clear indication of heightened trading activity and investor participation.
Coinbase followed with significant inflows as well, receiving $4.3 Billion in USDT. Other exchanges collectively saw an inflow of $6.5 Billion in USDT.
This overall increase in USDT on exchanges typically signified greater liquidity, enabling more substantial and frequent trading operations.
Bitcoin inflows mirrored this trend. Binance received a remarkable 20,000 BTC on election day alone, with an additional 26,000 BTC in the following two days.
Coinbase in the US also demonstrated robust activity, with 23,000 BTC arriving on November 5 and nearly 44,000 BTC in the subsequent two days.
These dynamics suggested great response from the crypto markets to the US election, marked by renewed investor enthusiasm and substantial capital inflows.
This increased activity and the corresponding rise in trading volumes could potentially lead to further bullishness for Bitcoin and other cryptocurrencies as the market absorbs the impact of the election results and positions for future developments.
Futures Markets and ETF Inflows Post US Elections
The week has also seen a monumental increase in perpetual futures trading volume, reaching a staggering $1.1 Trillion, the highest weekly total since March.
Binance dominated this futures market surge, accounting for 43% of all trading activities, with significant volumes also recorded on OKX, Bitget, and Bybit.
The surge was directly correlated with the aftermath of Donald Trump’s victory, which seems to have bolstered investor confidence, propelling Bitcoin to new all-time highs nearing $90K.
This bullish trend in Bitcoin’s price further amplified the trading volumes.
Moreover, the enthusiasm extended into ETFs, which experienced extraordinary inflows. Blackrock’s IBIT Bitcoin ETF notably continued its remarkable growth trajectory, reaching $40 Billion in assets in a record 211 days, significantly faster than the previous record held by IEMG at 1,253 days.
This phenomenal growth has positioned IBIT within the top 1% of all ETFs by assets, surpassing all ETFs launched in the last decade, despite being only ten months old.
Over the week, ETFs saw over $10 Billion in daily inflows, accumulating to $67 Billion. These figures are nearing the annual record high of $910 Billion, with a real possibility of surpassing $1 Trillion this year.
Notably, the VOO ETF alone contributed significantly, adding $91 Billion, a figure $41 Billion beyond the previous record, representing approximately 10% of all ETF flows.
The response from the financial markets to the U.S. election confirmed the growing integration of cryptocurrencies within broader financial systems, indicating strong potential for continued growth.
