Nov 8, 2024
Leading up to the US Election on Wednesday, investors took a somewhat cautious approach with Bitcoin ETF outflows of over $600m on Monday and Tuesday, before a dramatic turn around on Wednesday as it became clear that Donald Trump was going to win the US Presidential Election. Investors absolutely rallied on this news, sending Bitcoin far beyond its all time high reaching $76’000 and holding, while Bitcoin ETF inflows topped $2B in just two days.
Now that Donald Trump is set to become President of the United States, a strategic Bitcoin reserve could very much be on the cards as the idea was teased by Trump and several other U.S. politicians earlier this year.
Ethereum ETF inflow was no different, over $120m inflow the last two days which is a sign that the wider DeFi ecosystem feels confident moving forward with investment given the new administration and President Donald Trump's interest in DeFi and NFTs.
In general the crypto sector is hoping for clearer regulation and less guard rails on markets in general, allowing the United States to become a technology leader in the growing sector. In fact there are over 266 pro-crypto candidates that have been elected to the House & Senate, according to the Stand with Crypto website.
Almost every currency we track on Metal Pay Markets saw gains this week, with Dogecoin leading the pack at an impressive 23.6% weekly increase. The bullish momentum could be driven by renewed excitement around Elon Musk's interest in the memecoin and his backing of the new Trump Administration’s Department of Government Efficiency (D.O.G.E.) plan.
Dogecoin enthusiasts consider Trump’s victory a major boost for the coin, as it promises more news involving Musk and the proposed D.O.G.E. department, which would aim to oversee government spending and eliminate fraud. During a campaign event in Pennsylvania, Musk’s enthusiastic “Yeah, D.O.G.E” response to a question about the department caused Dogecoin to spike 15%. It’s important to note that there is absolutely no relationship between the cryptocurrency and the proposed government department.
In wider market news, The Fed just cut interest rates by another 25 basis points yesterday adding more fuel to the markets and potentially bringing down the cost of lending on everything from auto financing to credit cards. The Stock Market also rallied behind the Republican president elect this week as the Dow surged to a new record high.
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