Trump's Bitcoin Boost: Crypto Inflows Surge to $1.9 Billion

Crypto inflows reached $1.9 billion last week, extending the January streak and bringing the year-to-date (YTD) flows to $4.8 billion. This surge is largely attributed to recent executive orders issued by President Donald Trump, proposing the establishment of Bitcoin as a strategic reserve asset.

According to the latest CoinShares report, Trump's executive orders reinvigorated investor confidence, sparking significant trading activity despite relatively flat prices. Bitcoin was the standout performer, attracting $1.6 billion in inflows and bringing its YTD total to $4.4 billion, accounting for 92% of all digital asset inflows. Notably, Trump's executive orders propelled a Bitcoin price recovery last week.

Trump's executive orders have had a ripple effect, boosting sentiment in other regions. Canada saw inflows of $31 million, Switzerland $35 million, and Germany $23 million, reflecting widespread optimism. In the same tone, the European Central Bank (ECB) has renewed its call for a digital euro, citing the momentum generated by Bitcoin's adoption.

The sustained inflows this year highlight a growing appetite for digital assets, with $585 million recorded in the first week of January alone. This trend reflects a broader acceptance of cryptocurrencies as viable investment vehicles. Trump's crypto-friendly stance continues to provide additional boosts, setting a tone of optimism for the year ahead.

As the crypto market enters the final week of January, investors are closely watching upcoming US economic data. The events could significantly influence inflows into digital asset investment products. Indicators such as GDP growth, inflation rates, and labor market statistics are expected to influence Bitcoin's trajectory. Positive data could further bolster confidence, while any signs of economic weakness might drive additional investment into crypto as a hedge.