Bitcoin’s Inflows Correct Months of Outflows as Dominance Persists
According to a recent report by CoinShares on July 10, the digital asset market has experienced a third consecutive week of positive inflows, effectively offsetting nine weeks of previous outflows. This week’s inflows reached $136 million, with Bitcoin maintaining its dominant position by accounting for 98% of the total inflows. The remaining 2% was contributed by Ether, multi-asset holdings, and a few alternative coins.
This ongoing trend of positive movement has resulted in a total inflow of $470 million, effectively reversing the previous outflow streak. Bitcoin inflows remain strong, following two weeks of year-long highs, with last week’s inflow totaling $123 million and an additional $10 million this week, bringing the two-week total for Bitcoin alone to $256 million.
Bitcoin’s dominance in the crypto market has also extended, with its total market share increasing from 51.46% last week to 51.66% as of July 11.
Furthermore, blockchain equities have experienced a surge in inflows, reaching a year-long high of $15 million, more than doubling the previous week’s $6.8 million. This marks the end of a nine-week outflow streak for blockchain equities.
However, there are indications of potential equilibrium as overall liquidity appears to be declining, with trading volume hitting a “seasonal low,” similar to previous years’ patterns of low liquidity in July and August. Despite the positive news regarding inflows, some investors are becoming apprehensive due to the absence of a clear trend.
The initial optimism surrounding the anticipation of US government authorization for Bitcoin to be offered as a spot exchange-traded fund seems to be waning as the approval process continues. Additionally, uncertainty lingers as the Securities and Exchange Commission’s litigation against Binance and Coinbase remains unresolved, leaving the outcome uncertain.