TL;DR
- Trading volume on cryptocurrency exchanges hit its highest level since March following the US presidential election.
- Binance dominated Bitcoin and USDT inflows, with a massive $7.7 billion USDT inflow during election week.
- Renewed demand for Bitcoin boosted the price of the cryptocurrency, reaching new all-time highs near $90,000.
Recent activity in cryptocurrency markets has seen a significant increase, especially during and after the US presidential election in November 2024.
According to data from CryptoQuant, cryptocurrency trading volume hit its highest level since March this year, driven by renewed investor interest following the election results.
Both Bitcoin and USDT (Tether) inflows to exchanges have increased significantly, reflecting a growth in liquidity and trading activity.
In particular, Binance has been the main beneficiary of this activity. The exchange experienced an exceptional volume of inflows, with USDT inflows standing out most prominently. During the election week, Binance received $7.7 billion worth of USDT, representing a significant flow that has increased its liquidity.
Comparatively, Coinbase, another major player in the US market, received $4.3 billion worth of USDT, and other exchanges added a total of $6.5 billion worth of this stablecoin. This increasing amount of USDT on exchanges not only indicates an increase in transactions, but also increased liquidity, making it easier to execute large buy and sell orders on the markets.
As for Bitcoin flows, Binance also dominated the market during and after Election Day. On November 5, Binance recorded the inflow of 20,000 Bitcoin, and in the following two days, the flow reached 26,000 Bitcoin.
This has been a clear indication that investors are looking to take advantage of the volatility and opportunities offered by the cryptocurrency market following the political event. In the United States, Coinbase was also very active, receiving 23,000 Bitcoin on the day of the election itself, contributing to a total of almost 44,000 Bitcoin in the days following.
The impact of the elections on the cryptocurrency market
This increase in exchange activity has not only been a reflection of increased liquidity, but also a revival of interest in Bitcoin.
As the election approached, cryptocurrency markets began to show signs of volatility, with futures trading surging and total trading volume surpassing $1 trillion
An interesting fact is that 43% of this cryptocurrency trading volume in the election week was concentrated on Binance, which underlines its dominant position in the ecosystem.
On the other hand, large inflows of USDT to exchanges can also be linked to moves by institutional investors seeking refuge in a stable asset, such as USDT, during events of political uncertainty.
This trend has been reflected in the market‘s behavior, which has shown an uptick in demand for Bitcoin, reaching new all-time highs close to $90,000. Donald Trump’s victory, which emerged as one of the most anticipated news of the election day, seems to have driven this renewed demand for Bitcoin and other cryptocurrencies.
The US presidential election has had a notable impact on cryptocurrency markets, with Binance leading the way in asset flows and an overall increase in trading activity.
The data reveals that exchanges have not only seen an increase in trading volume, but also in liquidity, which has allowed for greater flexibility for investors. Looking ahead, this trend is likely to continue as investors look to take advantage of market fluctuations in an uncertain political environment.