Why Are Digital Assets Booming After Trump’s Assassination Attempt?

The recent weeks have witnessed a substantial influx of investment into digital asset products, particularly Bitcoin, following an attempted assassination on former US President Donald Trump during a campaign event in Pennsylvania. CoinShares Research reported that the past week saw the fifth-largest weekly inflow ever for digital asset investment products, totaling $1.44 billion. This surge occurred despite a broader market correction, showcasing investor optimism as they viewed the dip as a buying opportunity rather than a deterrent. Year-to-date inflows have now reached an impressive $17.8 billion, overshadowing the $10.6 billion recorded in 2021, demonstrating a robust confidence in the digital asset market.

Notably, the United States contributed substantially to this surge with a staggering $1.3 billion in inflows. Other significant contributions also came from international markets like Hong Kong ($55 million), Canada ($24 million), and Switzerland ($58 million). Bitcoin alone garnered an impressive $1.35 billion, marking its fifth-largest weekly inflow. On the other hand, short-Bitcoin products experienced their most considerable weekly outflows since April, at $8.6 million. CoinShares’ strategist James Butterfill attributed this behavior among investors to several factors, including German government Bitcoin sales and improved sentiment resulting from lower-than-expected US CPI data.

Impact of SEC Approvals and ETF Inflows

One of the pivotal moments contributing to this boom was the January approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). These products have accumulated an astounding $15.8 billion in net inflows to date, and projections by JPM Securities estimate these ETFs could attract $220 billion by 2027. The approval was a significant milestone that instilled greater confidence among institutional investors and provided a more accessible entry point for retail investors. The move by the SEC was seen as a legitimizing factor for Bitcoin, further fueling inflows into the digital asset space.

Furthermore, Ethereum also saw significant inflows at $72 million, the largest since March, potentially driven by the anticipated approval of a US-based Ether ETF. The optimistic atmosphere extended beyond Bitcoin and Ethereum, as other altcoins such as Solana, Avalanche, and Chainlink also experienced inflows of $4.4 million, $2 million, and $1.3 million, respectively. These developments underscore the broad-based enthusiasm that has permeated the digital asset market, broadening the scope of investment beyond just Bitcoin and Ethereum. Investors are clearly looking for diversified exposure to the rapidly evolving digital assets landscape.

Socio-Political Factors and Market Responses

Recent weeks have seen a significant surge in investment in digital asset products, especially Bitcoin, following an attempted assassination on former US President Donald Trump during a campaign event in Pennsylvania. CoinShares Research reported that digital asset investment products experienced the fifth-largest weekly inflow on record, totaling $1.44 billion. This increase came even amid a broader market correction, reflecting investors’ optimism as they perceived the dip as a buying opportunity rather than a setback. Year-to-date inflows now stand at $17.8 billion, surpassing the $10.6 billion recorded in 2021, indicating strong confidence in the digital asset market.

The United States played a crucial role in this surge, contributing an astounding $1.3 billion. Other notable contributions came from international markets such as Hong Kong ($55 million), Canada ($24 million), and Switzerland ($58 million). Bitcoin alone attracted $1.35 billion, marking its fifth-largest weekly inflow. Conversely, short-Bitcoin products saw their most significant weekly outflows since April, at $8.6 million. CoinShares’ strategist James Butterfill attributed these trends to factors like German government Bitcoin sales and improved sentiment due to lower-than-expected US CPI data.

Explore more

Why is LinkedIn the Go-To for B2B Advertising Success?

In an era where digital advertising is fiercely competitive, LinkedIn emerges as a leading platform for B2B marketing success due to its expansive user base and unparalleled targeting capabilities. With over a billion users, LinkedIn provides marketers with a unique avenue to reach decision-makers and generate high-quality leads. The platform allows for strategic communication with key industry figures, a crucial

Endpoint Threat Protection Market Set for Strong Growth by 2034

As cyber threats proliferate at an unprecedented pace, the Endpoint Threat Protection market emerges as a pivotal component in the global cybersecurity fortress. By the close of 2034, experts forecast a monumental rise in the market’s valuation to approximately US$ 38 billion, up from an estimated US$ 17.42 billion. This analysis illuminates the underlying forces propelling this growth, evaluates economic

How Will ICP’s Solana Integration Transform DeFi and Web3?

The collaboration between the Internet Computer Protocol (ICP) and Solana is poised to redefine the landscape of decentralized finance (DeFi) and Web3. Announced by the DFINITY Foundation, this integration marks a pivotal step in advancing cross-chain interoperability. It follows the footsteps of previous successful integrations with Bitcoin and Ethereum, setting new standards in transactional speed, security, and user experience. Through

Embedded Finance Ecosystem – A Review

In the dynamic landscape of fintech, a remarkable shift is underway. Embedded finance is taking the stage as a transformative force, marking a significant departure from traditional financial paradigms. This evolution allows financial services such as payments, credit, and insurance to seamlessly integrate into non-financial platforms, unlocking new avenues for service delivery and consumer interaction. This review delves into the

Certificial Launches Innovative Vendor Management Program

In an era where real-time data is paramount, Certificial has unveiled its groundbreaking Vendor Management Partner Program. This initiative seeks to transform the cumbersome and often error-prone process of insurance data sharing and verification. As a leader in the Certificate of Insurance (COI) arena, Certificial’s Smart COI Network™ has become a pivotal tool for industries relying on timely insurance verification.