Following Donald Trump’s unexpected presidential win and the Federal Reserve’s 25-basis-point rate cut on November 7, cryptocurrency exchanges saw an influx of $9.3 billion in ERC-20 stablecoins, as reported by CryptoQuant. This is the second-largest deposit of stablecoins in history, with Binance receiving around $4.3 billion and Coinbase $3.4 billion. Such substantial deposits are often precursors to bullish market moves, echoing the stablecoin inflows that sparked the 2021 Bitcoin rally.
Market Anticipates Bullish Trend as Bitcoin Demand Surges
The Coinbase Premium Index, which tracks Bitcoin price differences between Coinbase and Binance, hit 0.098 on November 6—its highest since April.
This uptick points to a rising demand for Bitcoin in the U.S., bolstered by significant inflows into BlackRock’s spot Bitcoin ETF (IBIT), with over $1.38 billion added on November 7 alone. Crypto community Cobak notes that these high premiums suggest a sustained bullish trend as U.S. investors flock to Bitcoin over traditional equities.
Bitcoin May Outperform Other Assets Amid Fiscal Concerns
QCP Capital, a prominent crypto firm, believes Bitcoin’s bullish momentum will continue through 2025. They suggest Bitcoin may outperform other assets as it carries less risk premium amid rising fiscal concerns, including Trump’s proposed 60% tariff on China and the mounting U.S. national debt.
The company noted that this new landscape, shaped by the Trump administration’s stance on crypto, could drive further interest in Bitcoin over riskier equities.
Spot Bitcoin ETFs See Record-Breaking Inflows
U.S.-based spot Bitcoin ETFs also saw increased inflows, with $1.1 billion directed to BlackRock’s ETF alone, reversing recent outflows. This marks the ETF’s largest inflow since January, signaling a strong market shift toward Bitcoin-based investment products. Analysts anticipate this trend to continue as investors brace for what some are calling a “new crypto era” under Trump’s presidency.
As stablecoin inflows continue to fuel optimism, all eyes are on whether the new administration’s crypto stance will create the conditions for a prolonged Bitcoin rally.
