When the US election results were out, markets followed the trend with increased inflows in Bitcoin (BTC) and Tether (USDT) as investors returned. A remarkable growth of volumes and funds on crypto exchanges has followed. Specifically, data from CryptoQuant showed that the total exchange inflows in USDT increased sharply on November 5, up to $ 7.7 billion on election day.
Binance Dominates USDT and BTC Inflows
Binance is the most prominent example of platforms increasing inflows of USDT after the elections, averaging about 3.6 billion USDT. This was a notable part of the overall $6.5 billion volume increase to exchanges, which made Binance a market leader by volume. Coinbase and other exchanges continued the inflows at about $4.3 billion in USDT funds.
Institutional Activity Boosts Trading Volume
As mentioned previously, it has been reported that large transactions on Binance are related to institutional players, and considerable transactions in both Bitcoin and USDT have been observed. In Binance, Bitcoin accounts for approximately 20k BTC on election day and 26k on the next two days, targeting high demand for cryptos amid volatility.
Trading Volume Hits New Highs
Trading in the perpetual futures market also reached its highest levels since March, with a total trading volume of $1.1 trillion in a week. Binance was at the top of the list with 43% of such activity, with other platforms registering increased volumes, including OKX, Bitget, and Bybit.
The increased trading and inflows imply that investors return to digital currencies as a hedge during an unstable economic climate.
Source: https://blockchainreporter.net/election-aftermath-bitcoin-and-usdt-inflows-fuel-exchange-activity-boom/