Bitcoin Maintains Dominance with Third Consecutive Week of Fund Inflows, Correcting Previous Months’ Outflows

According to a recent report by CoinShares, the digital asset market has experienced a noteworthy turnaround, with three consecutive weeks of positive inflows effectively offsetting nine weeks of outflows. The inflows for this week amounted to $136 million, and once again, Bitcoin funds took the lead, accounting for 98% of the total inflows. The remaining 2% consisted mainly of Ether, multi-asset holdings, and a few altcoins.

With this latest surge in inflows, the total for the three-week streak has now reached $470 million, fully correcting the previous outflow trend. Bitcoin inflows have shown no signs of slowing down, maintaining their strong momentum from the past two weeks, where they reached their highest levels in a year. Last week alone, BTC recorded inflows of $123 million, and this week’s inflows added another $10 million, bringing the two-week total for Bitcoin to $256 million.

As a result of Bitcoin’s continued dominance in the crypto market, its total market cap has increased from 51.46% to 51.66% as of July 11.

Another positive development worth noting is the significant increase in blockchain equities inflows, which reached a yearlong high of $15 million. This figure more than doubled last week’s inflows of $6.8 million, effectively breaking a nine-week streak of outflows.

However, it’s important to consider the potential for equilibrium in the market, as overall liquidity appears to be on the decline. The report highlights that trading volume has reached a “seasonal low,” following a pattern observed in previous years with lower liquidity during July and August.

Despite the positive sentiment surrounding the recent inflows, some investors are expressing concern about the absence of a clear trend. The initial excitement generated by the anticipation of the United States government authorizing one or more companies to offer Bitcoin as a spot exchange-traded fund seems to be waning as the authorization process continues. Moreover, there remains an element of uncertainty regarding the ongoing litigation between the U.S. Securities and Exchange Commission and Binance and Coinbase, as the court’s final decision remains unknown.

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