Crypto fund inflows rebound as Bitcoin dominates
Crypto fund inflows have returned to positive territory after a three-week slump, driven primarily by Bitcoin. The renewed interest comes after July’s inflation figures were released, which were slightly better than expected. Here are the key points:
- Last week, inflows to crypto funds totaled $28.5 million, with $27 million flowing into Bitcoin.
- Bitcoin experienced net outflows of $144 million over the past three weeks.
- Ether and XRP also saw inflows of $2.5 million and $0.5 million respectively.
- XRP has experienced sixteen consecutive weeks of inflows, with a 127% increase in assets under management since the beginning of the year.
- The improved sentiment is attributed to the recent US inflation data, which suggests a lower likelihood of a September rate hike.
The decline in Bitcoin and other digital assets last year was due to the Federal Reserve’s aggressive rate hiking cycle to combat high inflation. However, with inflation now at 3.2% year over year, the Fed’s hiking cycle may have peaked, making it an opportune time to invest. Furthermore, the Bank of Canada is expected to keep its rate flat until the end of the year. Notably, most crypto inflows last week went to Canada’s Purpose ETF, the first Bitcoin spot ETF in the world. As excitement grows over a potential US Bitcoin spot ETF, analysts predict a 65% chance of approval in 2023.
Hot Take: Bitcoin’s dominance in crypto fund inflows signals renewed investor confidence and a potential turning point in the market. With inflation figures coming in below expectations, the likelihood of rate hikes decreases, making cryptocurrencies more attractive. The emergence of Bitcoin spot ETFs, especially in Canada, adds to the positive sentiment and could further drive the inflows into the crypto market.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content. Owen’s contributions serve as a valuable guide for both seasoned enthusiasts and newcomers, aiding them in navigating the dynamic world of cryptocurrencies with well-researched perspectives. With a meticulous commitment to precision, he empowers informed decision-making in the ever-evolving crypto domain.