The cryptocurrency industry has experienced a significant increase in investments, totaling around $18 billion year-to-date (YTD), surpassing the highest levels recorded in 2021.
Last week, Bitcoin (BTC) experienced a net inflow of $1.44 billion, mainly due to its sales in Germany and strong US Consumer Price Index (CPI) statistics. The rise in value can be ascribed to the German Government’s sale of Bitcoin and the release of US CPI data that was lower than expected, which has positively influenced market sentiment.
The influx of digital assets has surged to $17.8 billion, surpassing the previous peak of $10.6 billion recorded in 2021. The United States took the lead with $1.3 billion in inflows, while Switzerland, Hong Kong, and Canada followed with $58 million, $55 million, and $24 million respectively.
According to CoinShares, Bitcoin experienced $1.35 billion in inflows last week, making it the fifth-largest weekly influx. Ethereum (ETH) experienced substantial inflows, reaching $72 million, the highest amount since March.
Thomas Perfumo, the Head of Strategy at Kraken, proposed that the implementation of investment products based on Ethereum (ETH) may significantly enhance the market, perhaps resulting in monthly inflows ranging from $750 million to $1 billion. Solana, Avalanche, and Chainlink experienced inflows of $4.4 million, $2 million, and $1.3 million, respectively, similar to other cryptocurrencies.
Nevertheless, the levels of trading activity continue to be minimal, suggesting that investors are still exercising prudence. According to WuBlockchain’s data, there has been a 17% decrease in the volume of spot trading and a 19% decrease in the volume of derivatives trading on key exchanges compared to the previous month.
The market is seeing a noticeable change in attitude, driven by claims that Germany’s state of Saxony has completely sold off its BTC holdings, thereby decreasing the selling pressure. Traders and investors have also overcome the state of panic induced by the news of Mt. Gox repayment.
To summarize, the influx of funds into the cryptocurrency market has amounted to $17.8 billion year-to-date. This increase can be attributed to substantial inflows of Bitcoin and the positive data regarding the US Consumer Price Index. Although low trade volumes indicate investor concern, there is potential for increasing confidence if the market rebounds.
