The Resilience of Bitcoin: Inflows Amidst Setbacks
Bitcoin, the world’s largest cryptocurrency, has experienced both progress and setbacks in the past year. Despite the overall outflows from digital investment products, Bitcoin has shown resilience by recording a weekly inflow of $3.8 million.
Bitcoin Trading Volume Surpasses YTD Average
In its latest report on digital asset investment products, Coinshares reveals that Bitcoin investment products have received net inflows, even as the market saw minor outflows. Additionally, trading volumes for Bitcoin spiked to over 90% above the year-to-date average.
Regulatory issues have impacted BTC recently, leading to uncertainty. Notably, the SEC’s decision to delay its ruling on some Bitcoin spot ETF applications caused a setback, resulting in a price drop. However, trading volume for digital asset investment products reached $2.8 billion.
Consistent Outflows but Inflows for Bitcoin
For the past seven weeks, outflows from digital asset funds have remained consistent, totaling $342 million. Last week, Polygon and Ethereum experienced outflows of $8.6 million and $3.2 million, respectively. However, Bitcoin registered net inflows of $3.8 million, and Solana saw inflows of $0.7 million for the ninth consecutive week. Despite this, total assets under management have declined by 48% from this year’s peak.
A Change in Sentiment for Bitcoin
The consecutive weekly inflow to Bitcoin digital asset funds suggests a change in sentiment. Experts predict a cautiously optimistic outlook for BTC and the broader crypto market in 2023. It is anticipated that the SEC will be forced to approve several spot Bitcoin ETFs, which could have a positive impact on the market. Additionally, the recent increase in Bitcoin’s trading volume indicates stronger sentiment and momentum.
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