Bitcoin saw a resurgence following an assassination attempt on former US President Donald Trump during a campaign event in Pennsylvania.
CoinShares Research recently revealed that the last week recorded the fifth-largest weekly inflow ever for digital asset investment products. While the broader crypto market was facing a correction, investors saw it as a buying opportunity pouring $1.44 billion into these funds.
CoinShares data shows that the year-to-date (YTD) inflows have now reached $17.8 billion, far surpassing the 2021 inflows of $10.6 billion. Despite this surge, weekly trading volumes remained relatively low at $8.9 billion, compared to this year’s seven-day average of $21 billion.
The United States led the charge, contributing $1.3 billion in inflows for the week. Investors in other parts of the world also saw last week’s market drop as a strong buying signal. Hong Kong and Canada provided $55 million and $24 million, respectively. On the other hand, Switzerland posted $58 million, its largest inflows of the year.
Crypto-Wise Performance
Bitcoin secured $1.35 billion last week, leading the inflow scene. This was the cryptocurrency’s fifth-largest weekly inflow ever. In contrast, short-bitcoin products saw their largest weekly outflows since April, totaling $8.6 million. CoinShares’ investment strategist, James Butterfill, attributed this to a combination of factors, stating:
“We believe price weakness due to the German Government bitcoin sales and a turnaround in sentiment due to lower than expected CPI in the US prompted investors to add to positions.”
Notably, the Securities and Exchange Commission (SEC) approved the launch of spot bitcoin ETFs in January. These products have accumulated $15.8 billion in net inflows since then, bringing their total net asset value to $51.34 billion. In March, JPM Securities predicted that these spot ETFs could see $220 billion of inflows by 2027.
Meanwhile, last week had also been noteworthy for Ethereum, with $72 million in inflows, the largest since March. This spike likely anticipates the imminent approval of the spot-based Ether ETF in the US. CoinShares reports that other altcoins like Solana, Avalanche, and Chainlink also saw inflows of $4.4 million, $2 million, and $1.3 million, respectively.
Market Rebound
As the fresh week started, Bitcoin price bounced back to the $63,000 level, surpassing the 200-day simple moving average (SMA). This indicator is a widely tracked measure of long-term trends and signals a positive momentum for traders.
The largest cryptocurrency saw a resurgence following an assassination attempt on former US President Donald Trump during a campaign event in Pennsylvania. Trump-themed Polifi tokens also surged as a result of this incident.
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