This year has been a big one for the cryptocurrency market, with capital inflows reaching a total of $17.8 billion so far, a figure that has surpassed the 2021 peak. Especially last week, the market witnessed significant inflows of $1.44 billion. Meanwhile, Bitcoin has been the main driver of the market, with weekly inflows as high as $1.35 billion. This surge was mainly due to the German government’s sales of Bitcoin and the positive impact of US Consumer Price Index (CPI) data.

However, the decline in market participation shows investors' caution, but as the cryptocurrency market gradually recovers, investor confidence is expected to strengthen. Currently, the price of Bitcoin is stable at around $64,500, which brings positive signals to the entire market and drives the global cryptocurrency market value to achieve a growth of nearly 9%. Altcoins have also gained momentum due to Bitcoin's strong performance, showing the overall positive momentum of the market. $BTC

Crypto market capital inflow exceeds $17.8 billion

As the global cryptocurrency market gradually recovers, recent capital inflows have surpassed the highest record in 2021, reaching a staggering $17.8 billion. The U.S. market dominated with an inflow of $1.3 billion, reflecting the country's strong investment interest in crypto assets.

Additionally, cryptocurrency optimism also transcends national borders, with Switzerland, Hong Kong, and Canada reporting inflows of $58 million, $55 million, and $24 million, respectively, demonstrating widespread interest in cryptocurrencies among global investors.

The CoinShares report specifically pointed out that Bitcoin's weekly capital inflow was as high as $1.35 billion, which is the fifth highest in history. James Butterfill analyzed that the German government's sale of Bitcoin created short-term supply pressure in the market, providing investors with an opportunity to buy at a low price. At the same time, the positive results of the US CPI data also boosted market sentiment, prompting investors to increase their cryptocurrency positions.

“The combination of the German government’s bitcoin sales and the positive U.S. CPI data provided investors with a good opportunity to accumulate,” Butterfill said.

Ethereum and other cryptocurrencies inflows

Meanwhile, Ethereum also saw an inflow of $72 million, the largest weekly positive inflow since March. As market expectations for Ethereum spot ETFs continue to grow, investor interest continues to grow. Surveys show that U.S. investors have shown strong interest in such Ethereum-based investment products, indicating strong market demand for these products in the future.

Thomas Perfumo, head of strategy at Kraken, is optimistic about the market potential for Ethereum (ETH)-based investment products, predicting that the launch of these products will significantly boost inflows, which are expected to reach $750 million to $1 billion per month. Perfumo believes that this expected monthly inflow will have a significant positive impact on the entire cryptocurrency industry.

He pointed out: “The market generally expects that the launch of Ethereum ETF products will bring in about US$750 million to US$1 billion in monthly capital inflows, which will greatly support the development of the industry.”

In addition to Ethereum, other cryptocurrencies have also ushered in the spring of funds. Solana, Avalanche, and Chainlink recorded inflows of $4.4 million, $2 million, and $1.3 million, respectively. These positive capital flows provide a solid foundation for the market's recovery.

However, despite the optimistic inflow of funds, the CoinShares report also reminds us that the current trading volume is relatively low, only $8.9 billion, far below the average seven-day level of $21 billion this year. This phenomenon may indicate that market participants have maintained a certain degree of caution at this stage and lack sufficient confidence. This caution may be due to concerns about market volatility or uncertainty about the future direction of the cryptocurrency market.

Exchange investors remain cautious

Recently, trading data from exchanges has been sluggish, showing a clear trend of caution, although last week's trading volume was not satisfactory. This phenomenon may be due to investors' cautious attitude, a trend that has begun to emerge since June.

According to data compiled by the WuBlockchain team, market participation has declined, reflecting that the confidence of market participants may not have fully recovered.

The view is that this indecision among investors may be a natural reaction to uncertainty about the future direction of the market.

Conclusion:

The capital inflow into the cryptocurrency market this year not only broke the historical record, but also symbolized the arrival of a new financial era. Behind this phenomenon is the re-evaluation and vote of confidence of global investors in decentralized assets.

While the temporary drop in market participation may reflect short-term investor caution, in the long run, this volatility is part of market maturity and self-regulation.

As the market structure continues to improve and the regulatory environment becomes clearer, cryptocurrencies are expected to become an indispensable part of investment portfolios, providing investors with new ways to diversify and spread risks. #加密货币投资 #资金流入记录 #比特币 #以太坊ETF