The crypto market has seen a surge of inflows into investment funds, with Bitcoin responsible for carrying 99% of the load. These digital asset inflows have enjoyed positive movement for the fourth consecutive week, with $137 million incoming. According to CoinShares, the four-week total has reached $742 million, that effectively addresses the outflows experienced in the prior nine weeks. This marks the most significant inflow run since the concluding quarter of 2021.
Some attribute this continuing positive momentum to factors including a recent legal win for the crypto community. The ruling in the Securities and Exchange Commission v. Ripple lawsuit provided the market with a significant boost, evidenced by the XRP token’s surge and the concurrent rise in overall market activity.
However, as always in the fluid world of cryptocurrency, this momentum may not continue indefinitely. Despite four successive weeks of positive inflows into investment products, this week has registered a return to a ‘neutral’ rating on the ‘Fear and Greed Index’. Bitcoin, a titan of the crypto world, nevertheless continues to hold the majority of all fund traffic, directing 99% of all inflows. The Bitcoin had a weekly total of $140 million, though some of these gains were countered by outflows in other currencies, including Ethereum that saw further outflows of $2 million.
Bitcoin’s market dominance, however, doesn’t mean an equivalent surge in its market capitalization. Over this week, Bitcoin’s market cap has budged just slightly. This is a sign of the subdued price action for the largest cryptocurrency, reflecting a downslope of nearly one percent in its market dominance rate.
Regionally, the United States and Canada remain at the forefront, hosting the majority of digital asset activity with $109 million and $28 million in inflows respectively. However, the only exception outside these regions was Switzerland, which surpassed the European market with $3.3 million in inflows, tallying its monthly total to $12.2 million. The positive outlook provided by these numbers must be balanced by the awareness that most other regions documented outflows during the same period.
This market overview displays the dynamic nature of cryptocurrency, with the capacity for rapid and significant changes. While the influx of investments is indeed a positive sign for enthusiasts, it’s crucial to maintain a cautious perspective in this highly volatile environment.
Source: Cointelegraph
