According to a report from CoinShares published on July 10, the digital asset market experienced a third consecutive week of positive inflows, completely reversing the trend of outflows seen in the previous nine weeks. The inflows for this week amounted to $136 million, with the majority (98%) being allocated to Bitcoin (BTC) funds. The remaining 2% was distributed among Ether (ETH), multi-asset holdings, and a few altcoins.
This consistent influx of funds has brought the total inflow for the three-week period to $470 million, effectively offsetting the previous outflow streak. CoinShares attributes the positive movement to the correction of the market and its growing appeal to investors.
Bitcoin inflows have shown no signs of slowing down, as they reached yearlong highs in the past two weeks. Last week alone, BTC inflows amounted to $123 million, and an additional $10 million was invested this week, bringing the total two-week inflow for BTC to $256 million.
Bitcoin’s dominance in the crypto market has also increased, with its total market cap rising from 51.46% last week to a reported 51.66% share as of July 11. This further strengthens Bitcoin’s position as a preferred choice among investors.
Blockchain equities also experienced a positive boost, with inflows reaching a yearlong high of $15 million. This marked a significant increase from the previous week’s $6.8 million and ended a nine-week outflow streak for blockchain equities.
Despite the positive news surrounding the inflows, there are indications of a potential equilibrium in the market. According to the report, trading volume has decreased and hit a “seasonal low,” replicating previous years’ patterns of low liquidity during the months of July and August.
While the inflows are encouraging, some investors are becoming wary due to the lack of a clear trend. The anticipation of receiving authorization from the United States government to offer BTC as a spot exchange-traded fund had initially generated positive sentiment among investors. However, as the process continues, the excitement appears to be diminishing.
Uncertainty also lingers in the market, as the U.S. Securities and Exchange Commission’s ongoing litigation against Binance and Coinbase plays out. Investors are anxiously awaiting the outcome and the potential impact on the market as a whole.
In conclusion, the digital asset market has experienced a wave of positive inflows for the past three weeks, fully offsetting the previous outflow streak. Bitcoin continues to dominate the market, both in terms of inflows and total market cap. However, there are signs of potential equilibrium, and investors are becoming cautious amidst the lack of a clear trend and ongoing regulatory challenges.