There Were Inflows Of $15 Million Into Crypto Investment Products Last Week: Report
- The report noted a gradual rise in Ethereum sentiments while short-Bitcoin inflows recorded a reduction.
- There was a total of $6.3 million inflows to short-Bitcoin last week, according to the crypto investment report.
A Coinshares weekly report of funds inflows to digital assets for last week showed that total funds flow into crypto investment products was $15 million. However, the figure is $50 million short of inflows recorded in the previous week.
The report also states that assets under management reached $36.2 billion. That represents a significant rise from their 18-month lows.
Crypto Investment Cash Inflows
There was a total of $6.3 million inflows to short-Bitcoin last week. By contrast, Bitcoin outflows totaled $1.7 million. Notably, there is a gradual cool-off in short position inflows. Also, the recent price surge in Bitcoin’s value pushed Bitcoin’s assets under management to $127 million last week.
It had earlier reached a peak value of $140 million. For the third successive week, total Ethereum inflows reached $7.6 million. The inflows indicate a slight turn-around in market sentiment after nearly three months of outflows. Before last week, Ethereum’s outflows had hit a new high of $460 million this year.
The turn-around in the Ethereum sentiment might result from the possibility that the Merge will happen soon. The Merge will see the migration of Ethereum from a proof-of-work to a proof-of-stake network. There were $2.2 million inflows into multi-asset investment products.
There hasn’t been a lot of buzz in the altcoin market since the start of this month. Total outflows for this month are $300,000. Total inflows across US exchanges were $8.2 million. However, 76 percent of these inflows were short positions. There was a total of $7.1 million in inflows across Canadian exchanges, with Switzerland recording $1.9 million in inflows.
Side Notes
Many traders and investors need to be aware of the effect of the June CPI data release on the crypto market. A high level of inflation data will negatively affect Bitcoin and other large layer-1 (L1) blockchains, as it happened in previous times. Unexpectedly high inflation data caused the Fed to raise rates to 0.75 percent.
Almost immediately after the Fed announced a rate rise, BTC’s price dropped by 10 percent. If the same scenario plays out, the effect on the crypto market will also be the same. However, an unexpectedly positive CPI data release will positively impact Bitcoin’s price action.
The lack of inflows and the low trading volume on the crypto market continue to frustrate Bitcoin’s rally attempts. According to institutional inflows data, funds and firms are no longer in a rush to have more Bitcoin holdings. Many investors are avoiding the crypto market because of macroeconomic conditions, which have caused a 75 percent crash in price, $64,382.79.
The US Dollar rally and the inflation data are important factors that could force the possibility of a crypto market rally in future. The same factors could also push away investors from increasing their crypto holdings.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
