Upturn in Bitcoin Leads the Third Consecutive Week of Digital Asset Inflows

Upturn in Bitcoin Leads the Third Consecutive Week of Digital Asset Inflows

Digital Asset Market Bounces Back

The digital asset market has seen a positive shift for the third consecutive week, mitigating the slump of the prior nine weeks, as per a CoinShares report published on July 10. This week's inflows amounted to $136 million, with Bitcoin funds substantiating their leading role, accounting for 98% of the inflows. The remaining 2% were largely composed of Ether, multi-assets, and a selection of altcoins.

Ground Made After Nine Weeks of Outflows

Following nine weeks of outflows surpassing inflows in the digital asset market, the positive run over the last three weeks has brought the overall inflows to $470 million. This total successfully offsets the previous outflow cycle, according to CoinShares.

Sustained Momentum for Bitcoin Inflows

Bitcoin inflows remained strong over the past week, coming off the back of reaching yearly highs in the two preceding weeks. As previously reported by Cointelegraph, last week’s Bitcoin inflows tallied $123 million. Adding $10 million this week has brought the fortnightly Bitcoin inflow total to $256 million.

Bitcoin's Ongoing Market Dominance

Bitcoin's authority in the cryptocurrency market is unwavering as it further increases its total market cap from 51.46% last week to a reported 51.66% as of July 11.

Blockchain Equities Inflows Reach New Highs

For Bitcoin investors, the good news doesn't stop there. Blockchain equities inflows have hit a yearly high of $15 million, more than doubling the previous week's $6.8 million, which concluded its own nine-week consecutive outflows, reports CoinShares.

The Market Moderation Outlook

However, a possible balance could be in sight, as total liquidity seems to be dwindling. The report shows trading volume hitting a "seasonal trough," replicating patterns seen in prior years when liquidity dipped in July and August.

Even with the reassuring signs of inflow increases, some investors are showing signs of anxiety over the lack of a definitive ongoing trend. Optimism initially spurred by the prospect that one or more firms might finally secure approval from the US government to offer BTC in a spot exchange-traded fund may be waning.

The ongoing litigation of the U.S. Securities and Exchange Commission against Binance and Coinbase remains a source of uncertainty, with no visible indications of the impending court decisions.