Bitcoin has continued to dominate the cryptocurrency market as it experiences a third consecutive week of positive fund inflows, which have corrected the previous nine weeks of outflows, according to a report published by CoinShares. The inflows for this week alone reached $136 million, with 98% of the funds going into Bitcoin, while the remaining 2% were mostly invested in Ether, multi-asset holdings, and a few altcoins. This trend has extended Bitcoin’s total market cap from 51.46% to 51.66%, cementing its position as the market leader.
In addition to the positive news surrounding Bitcoin, blockchain equities inflows have reached a yearlong high of $15 million, which is more than double the previous week’s $6.8 million. This marks the end of a nine-week outflow streak and shows that investors are starting to regain confidence in the industry. However, despite the positive news, trading volume has dropped, reaching a seasonal low. This is a common trend observed in previous years, where liquidity in July and August has been historically low.
Despite the recent positive developments, some investors are getting nervous due to the lack of a clear trend in the market. There is also uncertainty surrounding the US government’s authorization of BTC as a spot exchange-traded fund and the ongoing litigation against Binance and Coinbase. Some investors had been hopeful that one or more companies would finally receive authorization from the United States government to offer BTC as a spot exchange-traded fund, but the process is taking longer than expected, and there is no clear timeline for when this will happen.
In conclusion, Bitcoin’s dominance in the market remains unchallenged, and the recent positive inflows have corrected the previous outflow streaks. However, the market is still volatile, and investors are advised to exercise caution when investing in cryptocurrencies. Despite the recent positive developments, there is still uncertainty surrounding the industry, and investors should be prepared for ups and downs in the market.
Source: Cointelegraph
