Daily Crypto Roundup: Record Inflows as Bitcoin Approaches $70,000 Amid Election Optimism

Daily Crypto Roundup: Record Inflows as Bitcoin Approaches $70,000 Amid Election Optimism

The cryptocurrency market has witnessed unprecedented capital inflows and notable price movements, with Bitcoin miners and exchanges showing strong performance amid growing institutional interest.

Record-Breaking Inflows

Digital asset inflows reached $901 million in the week ending October 25, pushing the year-to-date total to an impressive $27 billion – nearly triple the previous record of $10.5 billion set in 2021. Bitcoin led the charge with $920 million in inflows, largely attributed to growing optimism surrounding the upcoming U.S. elections and Republican gains in polls.

The United States dominated regional flows with $906 million, while Germany and Switzerland recorded gains of $14.7 million and $9.2 million, respectively. Some markets saw minor outflows, with Canada, Brazil, and Hong Kong reporting withdrawals of $10.1 million, $3.6 million, and $2.7 million, respectively.

Institutional Adoption Continues

BlackRock’s iShares Bitcoin Trust ETF maintains its leadership position with over $28 billion in assets under management, contributing to a combined $78.9 billion managed by Bitcoin ETF issuers. October has proven particularly significant, with inflows accounting for 12% of total assets under management, marking it as the fourth largest month of capital flows on record.

Mining Sector Surge

Bitcoin mining stocks experienced substantial gains, with some companies seeing share price increases of up to 24.4% as Bitcoin surpassed $69,000. Bitdeer Technologies led the surge with a 24.4% rally, followed by strong performances from IREN (17.8%), Gryphon Digital Mining (16.5%), and Hut 8 (15.5%).

Mitchell Askew, head analyst at Blockware, attributes the positive momentum to favorable macroeconomic conditions and miners’ diversification into AI and high-performance computing sectors. “Deficit spending and lower interest rates are driving global liquidity higher,” Askew noted, adding that investors are seeking hedge against long-term inflation risks.

Market Outlook

VanEck’s head of digital assets research, Matthew Sigel, suggests Bitcoin is in a “very bullish setup” ahead of the U.S. presidential election, drawing parallels to the 2020 election cycle. The firm’s long-term outlook remains optimistic, with projections ranging from $2.9 million to $52.3 million per Bitcoin by 2050, assuming increased adoption in international trade and central bank reserves.

Regulatory Developments

In Hong Kong, regulatory bodies are advancing crypto market oversight, with the Securities and Futures Commission (SFC) announcing plans to establish a consultative panel for licensed cryptocurrency exchanges in 2024. The initiative aims to enhance transparency and shared responsibility among licensees, with Eric Yip, the SFC’s Executive Director, emphasizing the need for balanced regulation that protects investors while fostering market development.

Alternative Networks Gain Traction

Solana has emerged as a significant player in the ecosystem, generating over $2.54 million in daily fees, temporarily surpassing Ethereum’s $2.07 million. Meanwhile, Coinbase’s Layer-2 network Base achieved a milestone by briefly becoming the leading blockchain for stablecoin volume, accounting for 30.06% of all stablecoin transactions.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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