Markets
Bitcoin leads $17.8 billion inflow
Cryptocurrency inflows surged last week, recording $1.44 billion in positive flows into digital asset investment products. This brings year-to-date (YTD) inflows to $17.8 billion, effectively surpassing 2021 highs.
The cryptocurrency market is staging a recovery, flashing green as Bitcoin (BTC) treads the $62,000 range. The global cryptocurrency market cap is up nearly 5% as BTC’s show of strength gives a boost among altcoins.
Crypto asset inflows hit $17.8 billion
Digital asset inflows surpassed 2021 highs of $10.6 billion last week, reaching $17.8 billion as crypto markets recover. The US recorded $1.3 billion in inflows, accounting for the bulk of the positive flows. However, the bullish sentiment is not limited to its borders, as Switzerland, Hong Kong, and Canada all recorded commendable inflows — $58 million, $55 million, and $24 million, respectively.
In a recent publishCoinShares highlighted as much as $1.35 billion in Bitcoin inflows, marking the fifth-largest weekly inflow. James Butterfill attributes the positive flows to investors capitalizing on the German government supply pressure in BTC to buy the dip. He also acknowledges the role of the US Consumer Price Index (CPI)which is falling short of expectations in inspiring accumulation.
“We believe price weakness due to the German government’s bitcoin sales and a turnaround in sentiment due to lower-than-expected US CPI prompted investors to add to their positions,” Butterfill he wrote.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
Ethereum (ETH), on the other hand, saw $72 million in inflows, marking the largest positive flows since March. This capital influx comes amid expectations of Ethereum ETFs in Spotlight this week, with a research showing significant interest among US-based investors.
Kraken’s head of strategy, Thomas Perfumo, said the launch of these ETH-based investment products could lift the market, potentially catapulting monthly inflows of between $750 million and $1 billion.
“I believe the market is pricing in somewhere around $750 million to $1 billion in net inflows into Ethereum ETF products every month, and so if we try to match that, it will create positive support for the industry,” Perfumo stated.
Solana, AvalancheIt is Chain link also saw positive inflows of $4.4 million, $2 million and $1.3 million, respectively. These inflows last week set the stage for the market’s recovery on Monday.
However, the report highlights low trading volumes, suggesting a lack of conviction and a lot of caution among traders.
“Volumes remained low at $8.9 billion for the week, compared to this year’s seven-day average of $21 billion,” the CoinShares report noted.
Exchange data shows Investor beware
The low volumes seen last week, attributed to investor caution, date back to June. Data compiled by the WuBlockchain team shows a diminished market share, likely because of weak market confidence.
Specifically, the team observed:
- A 17% drop in spot trading volume on major exchanges month-over-month.
- A 19% drop in derivatives trading volume on major exchanges month-over-month.
- A 1% drop in website traffic for major exchanges
Read more: Coinbase Review 2024: Best Crypto Exchange for Beginners?
A change in feeling is visible in the market, inspired, among others, by reports that The German state of Saxony has sold out its BTCand therefore there are no more sales. Traders and investors also recovered from the panic after Mt. Gox Refund News.
At the time of writing, Bitcoin is trading at $62,955, up more than 5% in the past 24 hours.
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