Bitcoin continues dominance as 3rd week of fund inflows correct previous months’ outflows

Bitcoin inflows revealed no signs of decreasing this past week after publishing year-long highs in the previous 2. As Cointelegraph previously reported, BTC inflows for last week were $123 million. Today includes $10 million, bringing the two-week inflow haul for BTC alone to $256 million. This continues Bitcoins crypto market supremacy by extending its overall market cap from last weeks 51.46% to a reported 51.66% share as of July 11. In other excellent news for hodlers, blockchain equities inflows reached a year-long high of $15 million. This more than doubled recentlys $6.8 million, which snapped a nine week outflow streak of its own, according to Coinshares. However, there may be some indicator of stability on the horizon, as total liquidity appears to be down. According to the report, trading volume has struck a “seasonal low,” mimicing cycles from previous years that saw low liquidity in July and August.Related: Bitcoin supply shock will send out BTC rate to $120K– Standard CharteredDespite the continuing positive news surrounding inflows, some financiers appear to be getting anxious over the lack of a clear trend. Favorable belief generated by the expectation that one or more business would lastly receive permission from the U.S. government to use BTC as an area exchange traded fund might be tapering off as the process endures. There also remains an air of unpredictability as the Securities and Exchange Commissions ongoing lawsuits against Binance and Coinbase continues with no clear sign regarding how the courts will decide.

The other 2% mostly came from Ether (ETH), multi-asset holdings, and a handful of altcoins.Source: Screenshot, CoinShares After nine weeks where digital asset outflows outmatched inflows, this third consecutive week of positive motion brings the present streaks overall to $470 million. Bitcoin inflows revealed no indications of slowing down this previous week after posting year-long highs in the previous 2. As Cointelegraph previously reported, BTC inflows for last week were $123 million.

A third straight week of favorable digital property inflows has fully fixed 9 previous weeks of outflows for the market, according to a report from CoinShares published on July 10. This weeks inflows registered $136 million. Bitcoin (BTC) funds continued their trend of holding the anchor position, with 98% of the inflows originating from BTC. The other 2% mostly came from Ether (ETH), multi-asset holdings, and a handful of altcoins.Source: Screenshot, CoinShares After nine weeks where digital possession outflows surpassed inflows, this third successive week of positive motion brings the existing streaks total to $470 million. According to Coinshares, this total totally fixes for the previous outflow streak. This brings the last 3 successive weeks inflows to US$ 470m, completely fixing the previous 9 weeks of outflows.Trading turnover has slowed however, which might be discussed by the seasonal effects, where lower volumes are generally seen during July and August.2/ 6 pic.twitter.com/4uyvrY0aRP— CoinShares (@CoinSharesCo) July 10, 2023

Other Questions People Ask

What does Bitcoin's continued dominance indicate about fund inflows in the third week?

Bitcoin's continued dominance, marked by a third consecutive week of fund inflows, suggests a strong recovery from previous months' outflows. With BTC inflows reaching $123 million last week and a total of $256 million over two weeks, it highlights renewed investor confidence. This trend has also increased Bitcoin's market cap share from 51.46% to 51.66%, reinforcing its position as the leading cryptocurrency.

How are recent fund inflows affecting Bitcoin's market cap?

The recent fund inflows have positively impacted Bitcoin's market cap, increasing its share from 51.46% to 51.66%. This growth is attributed to a total inflow of $470 million over the past three weeks, effectively reversing the previous nine weeks of outflows. Such a significant recovery indicates that investors are regaining trust in Bitcoin as a stable asset in the crypto market.

What challenges might Bitcoin face despite positive fund inflows?

Despite the positive fund inflows, Bitcoin may face challenges related to market stability and regulatory uncertainty. The ongoing lawsuits against major exchanges like Binance and Coinbase create an unpredictable environment for investors. Additionally, the expectation of approval for Bitcoin ETFs may be waning, which could affect future inflow trends and overall market sentiment.

What role do blockchain equities play in the current market trends alongside Bitcoin?

Blockchain equities have recently seen a surge in inflows, reaching a year-long high of $15 million, which complements Bitcoin's strong performance. This increase more than doubled the previous inflow of $6.8 million, indicating a broader interest in blockchain technology beyond just Bitcoin. Such trends suggest that investors are diversifying their portfolios while still recognizing Bitcoin's dominance in the market.

How does seasonal trading volume affect Bitcoin's current performance?

The current seasonal trading volume appears to be at a low point, which is typical for July and August based on historical patterns. This decrease in liquidity could impact Bitcoin's price volatility and overall market dynamics. Investors should be aware that while fund inflows are positive, lower trading volumes may lead to less predictable price movements in the short term.