Crypto Inflows Soar as Confidence in Digital Assets Strengthens
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The digital asset market has demonstrated remarkable resilience and growing confidence, as seen in a significant surge in crypto inflows, which reached a staggering $646 million in the last week alone, according to a recent report from CoinShares. This surge brings the year-to-date inflows to an unprecedented $13.8 billion, surpassing the previous record of $10.6 billion set in 2021.
Despite these impressive figures, there is a noticeable shift in investor behavior. Exchange-Traded Fund (ETF) investors, who were previously bullish, are now showing signs of restraint, with weekly inflows not matching the highs of early March. Additionally, trading volumes have seen a dip, falling to $17.4 billion last week from the peak of $43 billion at the beginning of March.
The US Recorded Almost $650 Million in Crypto Inflows Last Week
The investment landscape remains divided across regions. The United States leads the charge with an additional inflow of $648 million. Brazil, Hong Kong, and Germany also contributed positively, with inflows of $10 million, $9 million, and $9.6 million, respectively.
On the other hand, Switzerland and Canada experienced outflows, losing $27 million and $7.3 million, respectively, indicating a more cautious stance among investors in these countries.
Bitcoin continues to be the centerpiece of investor interest, amassing inflows of $663 million. Conversely, short-bitcoin investment products, which bet against the market, have seen outflows for the third consecutive week, totaling $9.5 million. This trend suggests a waning pessimism among investors who previously held bearish views.
Ethereum, the second-largest cryptocurrency by market capitalization, has faced outflows for four weeks straight, amounting to $22.5 million. However, other alternative coins (altcoins) like Litecoin, Solana, and Filecoin have bucked the trend, with inflows of $4.4 million, $4 million, and $1.4 million, respectively, signaling a diversified interest in the broader crypto market.
Bitcoin Open Interest Taps Record High
In related developments, Bitcoin Open Interest (OI) has reached a new all-time high, coinciding with Bitcoin’s recent rally to $72,000.
Bitcoin: Open Interest hits all-time high, with a value of $18.2Bhttps://t.co/Nr0Sb2DNb0 pic.twitter.com/NhYQIPzhCW
— Maartunn (@JA_Maartun) April 8, 2024
OI, which measures the total active Bitcoin derivatives contracts across exchanges, serves as a barometer for capital flow into the market. A rise in OI typically prompts investors to open more positions, potentially increasing Bitcoin’s price volatility.
As of the latest update, Bitcoin’s price stands at $70,680, marking a 24-hour decline of 1.4%.
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