Crypto Inflows Surge to $436 Million After Weeks of Outflows
The post Crypto Inflows Surge to $436 Million After Weeks of Outflows appeared on BitcoinEthereumNews.com.
In a dramatic reversal of fortune, crypto investment products have experienced a substantial influx of capital, with inflows reaching $436 million after weeks of outflows totaling $1.2 billion. The growing speculation about interest rate cuts has largely driven this sudden shift in investor sentiment in mid-September 2024. James Butterfill, head of research at CoinShares, noted that the surge in inflows was observed towards the end of last week. He linked this phenomenon to changing market expectations regarding a possible 50 basis point interest rate cut on September 18, 2024. These expectations were reportedly fueled by comments from Bill Dudley, former president of the New York Federal Reserve. Source: CoinShares Despite this significant inflow of capital, trading volumes in exchange-traded funds (ETFs) remained stagnant at $8 billion for the week. This figure falls considerably short of the year-to-date average of $14.2 billion, indicating that while investor interest has spiked, overall market activity has yet to catch up. At the same time, the Bitcoin (BTC) price remains range bound between 55k and 59k after failing to maintain its break out above $60,000 achieved over the weekend. U.S. Leads Crypto Investment Surge On a regional scale, the United States emerged as the frontrunner in this crypto investment resurgence, accounting for a staggering $416 million in inflows. European nations also contributed to the trend, with Switzerland and Germany adding $27 million and $10.6 million respectively to the global tally. Bitcoin, the world’s leading cryptocurrency, was the primary beneficiary of this renewed investor interest. The digital asset managed to reverse a 10-day streak of outflows that had amounted to $1.18 billion, attracting $436 million in fresh capital. This turnaround shows Bitcoin’s enduring appeal to investors, even in the face of recent market volatility. Interestingly, as Bitcoin’s fortunes improved, short-Bitcoin products experienced a contrasting trend. These…
Filed under: News - @ September 17, 2024 12:15 am