The recent dip in the value of crypto assets has fueled aggressive inflow with buying from investors seeking to leverage the price weakness. Remarkably, the situation led to a massive $1.44 billion in inflows in the outgone week.
According to the report, the inflows witnessed surpassed the 2021 record of $10.6 billion by over seven billion dollars as net inflows, year-to-date, reached $17.8 billion. However, despite this large inflows, weekly volume remained low at $8.9 billion in contrast to this year’s average of $21 billion.
Bitcoin Leads the Crypto Inflow Charge
As per digital assets, Bitcoin recorded the largest weekly inflows ever with a whopping $1.35 billion. Meanwhile, short-Bitcoin witnessed its largest inflows per week since April as it registered $8.6 million. Analysts are proffering reasons for these inflows and a common thread in the driving factor is the transactions in Germany.
Analysts hold strongly that the broader crypto space experienced price weakness as a result of the Bitcoin sales by the German authorities. Investors on their part, took advantage of the low prices to consolidate their positions.
Meanwhile, as per figures from Farside Investors, on July 9 alone, the total net inflows across all U.S.-based spot BTC ETFs stood at $216.4 million, or 3,760 BTC. The inflows remained steady despite market volatility.
Altcoins and the Broader Market
Aside from Bitcoin, some altcoins also had inflows. Noteworthy among the altcoins is Ethereum which had a total of $72 million in inflow. Last week’s record may have been driven by the optimism of a likely approval of the spot ETF by the United States, Securities and Exchange Commission.
Other altcoins with significant inflows include Solana with $4.4 million, Avalanche with $2 million, and Chainlink with $1.3 million inflows.
Global Participation in Inflows
Interestingly, the United States led the crypto inflows as per countries with a cumulative $1.3 billion for the week. However, the positive sentiment was not restricted to the U.S. alone. Other notable countries were Switzerland, Hong Kong, and Canada each recording $58 million, $55 million, and $24 million respectively.
As the price of Bitcoin begins to rebound, market watchers are keen to see how this will affect investors’ sentiment and weekly inflows.
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