Digital Assets Inflows. Despite the market’s volatility, there was a significant increase in the amount of money invested in digital asset goods last week, amounting to $1.44 billion. According to a report that CoinShares released on Monday, the total brought the year-to-date inflows to an astounding $17.8 billion, far higher than the $10.6 billion reported for 2021.
Even though a significant amount of money was coming in, the report stated that weekly trade volumes remained low at $8.9 billion, significantly lower than the average of $21 billion for the entire year.
The US Leads in Terms of Inflows
The United States of America led the charge with inflows of $1.3 billion, highlighting the positive feeling that was widely felt worldwide. Switzerland experienced record inflows this year, and Hong Kong and Canada, which recorded $58 million and $55 million, respectively, were also notable contributors. Switzerland was the recipient of the highest amount of contributions.
CoinShares reports that as of the previous week, Digital Assets Inflows investment products received $1.44 billion, increasing the total inflows for the year to date to a record $17.8 billion. With a total of $1.35 billion, Bitcoin saw its fifth-largest weekly influx. Ethereum achieved inflows of $72 million.
Notable is the fact that Bitcoin received a total of $1.35 billion, which is the fifth-largest weekly inflow ever recorded in the history of cryptocurrency. In contrast, short-Bitcoin products suffered the greatest weekly outflow since April, amounting to $8.6 million.
According to researchers at CoinShares, the activity can be ascribed to recent events, such as the government of Germany selling Bitcoins and a shift in market attitude due to lower-than-expected data regarding the Consumer Price Index in the United States. Additionally, there were considerable inflows in altcoins, with Ethereum leading the field with $72 million. This was Ethereum’s greatest weekly inflow since March when it reported $72 million.
This increase is largely due to the expectation surrounding the imminent adoption of a spot-based exchange-traded fund (ETF) in the United States. Moreover, Solana, Avalanche, and Chainlink each received $1.4 million, $2 million, and $1.3 million in their respective accounts.
Investors Buy the Dip
Due to Bitcoin’s recent decline in price, exchange-traded funds (ETFs) that invest in it are receiving a significant amount of capital from investors. Value’s data indicates that over the last six trading sessions, exchange-traded funds (ETFs) in the United States have seen a net inflow of around $1.1 billion.
While the original cryptocurrency has experienced a loss of almost twenty percent since the beginning of June, investments have risen. July has traditionally been a positive month for the cryptocurrency market, with a typical return of 9% over the month. Many traders believe that this trend will continue.
Digital Assets Inflows: Notably, the price of Bitcoin rose above $62,000 over the weekend, which coincided with a rally in the cryptocurrency market as a whole. The top cryptocurrency started its surge not long after the murder attempt on Donald Trump, who is currently running for the Republican presidential nomination and was the previous President of the United States.
During the market rally, ETH, SOL, BNB, and TON’s prices increased significantly. The latest rally occurred due to a severe decline in the cryptocurrency market over the past few weeks. On the heels of Mt. Gox’s redistribution of Bitcoins and the sale of millions of dollars worth of the cryptocurrency seized by the German government, Bitcoin dropped as much as $53,000 earlier this month.
A cryptocurrency wallet affiliated with Genesis Trading transferred nearly $720 million worth of Bitcoin to the Coinbase exchange over the previous month, indicating probable liquidations may occur. This is negative news for Bitcoin. The wallet has been revealed to have carried over 12,600 Bitcoin, roughly equivalent to $719.9 million, over the past thirty days.
