Record $3.13B weekly inflows in digital asset investments, bringing the year-to-date total to $37B
The weekly inflows of digital asset investment products have reached their highest level ever, totaling $3.13 billion.
CoinShares’ report indicates that the surge has resulted in a record-breaking $37 billion in year-to-date inflows and a total of $15.2 billion in inflows since mid-September, when U.S. interest rates were first reduced.
The performance of early U.S. Gold ETFs, which only managed $309 million in inflows during their first year, has been significantly outperformed by Bitcoin, which continues to dominate the market and drive substantially of the growth.
The United States was the leading country in terms of geographic inflows, with a total of $3.2 billion reflecting the strong interest of investors.
Nevertheless, profit-taking was apparent in Europe, as evidenced by outflows of $40 million in Germany, $84 million in Sweden, and $17 million in Switzerland.
Conversely, regions such as Australia, Canada, and Hong Kong demonstrated greater optimism, resulting in inflows of $9 million, $31 million, and $30 million, respectively.
Despite the fact that its record-breaking price levels prompted $10 million in inflows into short-Bitcoin products, Bitcoin accounted for the lion’s share of inflows at $3 billion, marking a monthly high of $58 million not seen since August 2022.
At the same time, Solana distinguished itself from other altcoins by attracting $16 million in inflows, as opposed to Ethereum’s $2.8 million.
XRP, Litecoin, and Chainlink also received substantial investments, with $15 million, $4.1 million, and $1.3 million, respectively.
Nevertheless, multi-asset products experienced their second consecutive week of outflows, incurring a loss of $10.5 million.
After the liquidation of over $100 million in Bitcoin and Ethereum positions over the weekend, the market experienced a minor decline. However, both assets continue to trade above critical support levels of $95,000 and $3,200, respectively.
In a recent note, QCP Capital predicted that Ethereum would acquire near-term focus, while Bitcoin is expected to trade sideways until December, indicating that volatility remains elevated.
Ethereum call options are in high demand, which indicates that there is a growing interest in the asset. Bitcoin calls are being offered for later dates, which is likely due to the anticipated pro-crypto policies under Trump’s administration.
Market sentiment suggests that if Bitcoin continues to encounter resistance at the $100,000 level, it may shift gradually to Ethereum and other altcoins.
QCP stated in the note that Bitcoin’s dominance has already decreased from 62% to 59% in the past week, which is indicative of this change.
MicroStrategy’s Michael Saylor alluded to potential future Bitcoin acquisitions, which served as an additional source of intrigue.
The market is anxious to determine whether another investment could propel Bitcoin beyond the elusive six-digit milestone, potentially postponing the altcoin rally for a brief period in the wake of MicroStrategy’s post-election acquisitions.
VanEck, a global investment manager, has reiterated its ambitious $180,000 price target for Bitcoin, positioning it at the apex of the current market cycle.
Nathan Frankovitz and Matthew Sigel, digital asset analysts at VanEck, conveyed their conviction that the Bitcoin bull run is only just commencing its next phase.
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