According to crypto analytics firm CryptoQuant, Binance and Coinbase recorded significant stablecoin inflows after Donald Trump’s win. The firm highlighted that inflows of this magnitude were last experienced in 2020.
CryptoQuant, an on-chain analytics firm, revealed that Binance and Coinbase recorded $9.3 billion worth of stablecoin inflows shortly after Donald Trump’s presidential win. The firm inferred that these inflows to the Ethereum network could lead to prolonged bullish market trends.
Major exchanges record increased inflows in ERC-20 stablecoins
According to CryptoQuant data, the influx of ERC-20 stablecoins is the second largest in the crypto market’s history. The analytics firm suggested the inflows could result from consumer optimism following Donald Trump’s win, which is perceived as favorable for the crypto ecosystem.
Binance & Coinbase Receive a Massive $9.3 Billion Inflow of ERC-20 Stablecoins
“Historically, large-scale inflows and subsequent upward trends between September 2020 and February 2021 have coincided with bullish market rallies.” – By @MAC_D46035
Link 👇https://t.co/MTfonNZOz0 pic.twitter.com/D2ACsWoyPU
— CryptoQuant.com (@cryptoquant_com) November 7, 2024
The increased inflows have reportedly triggered a ripple effect across the crypto market as Bitcoin and Ethereum also registered price surges. Bitcoin reached its all-time high of $77,199, while the fear and greed index remained at 70. Ethereum also gained over 7% in the last 24 hours.
CoinMaketCap data also shows that ETH surpassed the $3,000 mark. ETH’s price surge was influenced by the 25 basis-point Fed rate cut and Trump’s win, further fueling investor interest in the asset.
CryptoQuant revealed that out of the $9.3 billion worth of ERC-20 stablecoins, $4.3 billion was deposited to Binance. The analytics firm also confirmed that $3.4 billion flowed to Nasdaq-listed exchange Coinbase. The remaining amount reportedly went into other smaller exchanges.
The firm highlighted that the last large-scale inflows and subsequent upward market trends were recorded in September 2020 and February 2021. According to CryptoQuant, the inflows resulted in a bullish rally, and if the current trajectory continues, the market could see similar results.
Market analysts suggest bullish rally could continue into 2025
According to QCP Capital, bullish sentiments could continue into 2025. It also commented that markets are looking forward to Trump’s implementation of the 60% tariff proposal on China after he assumes power.
It highlighted that concerns about the rising national debt and Trump’s proposal to reduce government spending to curb national debt could fuel the bullish rally as forelooking investors seek to invest more in the dollar and other lower-risk assets.
“All eyes on how Trump’s crypto stance might shape the market!’
QCP Capital also suggested that BTC carries a lower risk than equities. The firm added that the lower risk could position the digital asset to outperform other risk-on assets.
CryptoQuant highlighted the Bitcoin Coinbase premium index, which turned positive on November 6, shortly after Trump’s win. According to the data, the premium index difference between Bitcoin on Binance and Coinbase rose to 0.6, the highest since September 14, indicating increasing demand for the digital asset.
According to SoSoValue data, US-based spot Bitcoin ETFs registered over $1.38 billion in inflows following Trump’s win. $1.1 billion of these inflows flowed into BlacRock’s spot Bitcoin ETF. The amount accounted for over 80% of the net flows, making it the highest single-day net inflow in history. The increased inflows in ETFs also indicate renewed interest in the flagship cryptocurrency.
