Nach vier consecutive weeks of outflows, the US-based spot Bitcoin Exchange Traded Funds (ETFs) experienced a notable shift in dynamics, showing net inflows again. According to the latest data from CoinShares, digital asset investment products saw inflows for the first time in five weeks, totaling $130 million. This change indicates renewed investor interest in crypto-focused investment products, particularly in the United States, where most of these inflows, amounting to over $130 million, were observed.
Grayscale, a key player in the digital asset space, reported a significant decrease in weekly outflows, hitting the lowest point since January at $171 million. This trend suggests a potential market stabilization after a period of volatility and waning interest. Conversely, global investment flows presented mixed signals. After a week of record inflows likely spurred by "seed funding" post the Bitcoin ETF launch, Hong Kong experienced a significant drop in inflows to $19 million.
On the other hand, Switzerland saw inflows of $14 million, while Canada and Germany continued to face capital outflows totaling $660 million since the beginning of the year, signaling a persistently pessimistic sentiment in these markets. Bitcoin saw inflows of $144 million, countering what was described as a generally "weak month." In contrast, exchange-traded short Bitcoin products (ETPs) recorded outflows totaling $5.1 million over the past eight weeks, up to $18 million in total.
These figures underscore the volatile dynamics within the crypto market, with Bitcoin currently demonstrating stronger performance than Ethereum. The recent market movements showed Bitcoin rising by almost 3%, while Ethereum only increased by 1.2% in the last 24 hours. Despite these gains, both assets experienced declines of 2.3% and 6% respectively over the past week. In the midst of these fluctuations, crypto analyst Ali provided insights into Bitcoin's potential development, suggesting a rise to $76,000 if it reclaims $64,290 as a support level.
If this milestone is not met, the flagship cryptocurrency could fall to the $51,970 support level, based on extreme market value to realized value (MVRV) price ranges, highlighting this value as the all-time average. This shift in dynamics hints at a possible thaw in the crypto winter, with renewed interest in digital assets evident in the recent inflow trends among US spot Bitcoin ETFs.
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