Markets
Cryptocurrency investors park $1.4 billion in digital asset vehicles
Bitcoin and the US led capital flows into cryptocurrency-backed products as investors seized market opportunities at lower prices.
According to CoinShares research, investors parked $1.44 billion in crypto vehicles, with $1.35 billion flowing into Bitcoin (BTC) ETFs in the U.S. and other regions. These figures marked the fifth-largest weekly inflows into Bitcoin and pushed total crypto product inflows for 2024 to $17.8 billion.
Altcoins like Ethereum (ETH) has also received positive attention from investors, attracting $72 million in the past week since March. This year’s inflows have eclipsed 2021’s $10.6 billion and continue to set new records for digital asset investment.
Cryptocurrency markets rise again
Cheaper cryptocurrency prices seen last week encouraged investors to spend on digital asset investment products, leading to a market rally seen on Monday. Total cryptocurrency markets rose 3.9%, recovering to $2.4 trillion. Bitcoin’s 5.2% surge in 24 hours allowed the token to reclaim $62,500, narrowing the gap from its March peak to 15%.
Major altcoins like Ethereum, BNB and Solana (SUN) followed suit with over 5% price gains, according to crypto.news’ price pages. Overall, market sentiment has also improved, remaining neutral at press time. The crypto fear and greed index showed a rating of 52, a recovery from the market fears recorded last week.
QCP Capital researchers suggested that the market rally was triggered by Donald Trumpthe failed assassination and confidence that the pro-crypto presidential candidate has a better chance of being elected than Joe Biden. The company also cited Exhausted selling from German authorities. An excerpt from the QCP report reads:
“We thought the market was already positioned for a rally with the German government having exhausted its supply and also with large hedge funds aggressively buying calls last week. Trump was the perfect trigger for a market eager to go long.”