Cryptocurrencies Ethereum, Bitcoin, Solana, and XRP See Significant Increase in Weekly Inflows – Is a Bull Market Approaching?
The recent surge in the price of Bitcoin to around $65k has sparked increased interest among FOMO traders in the altcoin market, especially with the upcoming listing of spot Ether ETFs next week. This surge in demand for digital assets throughout this year has exceeded historical levels, indicating a potential super cycle on the horizon.
Despite a general correction in the crypto industry last week, digital asset investment products saw a significant cash inflow of approximately $1.44 billion, primarily driven by Bitcoin. CoinShares’ weekly report revealed that year-to-date cash inflows into digital asset investment products have reached $17.8 billion, surpassing the 2021 record of $10.6 billion during the same period.
Bitcoin experienced its 5th largest weekly cash inflow of about $1.35 billion, while Ethereum recorded a cash inflow of approximately $72 million. Additionally, Solana and XRP saw cash inflows of around $4.4 million and $1 million, respectively. CoinShares attributed the price weakness to the German government’s Bitcoin sales and a change in sentiment following lower-than-expected CPI in the US.
The demand for digital assets has been surging, fueled by institutional investors diversifying their portfolios. Despite the German government’s $2 billion Bitcoin sale, the leading cryptocurrency rebounded above $63k in the past few days. On-chain data indicated that Tether minted 1 billion USDT on the Tron network, signifying growing buying pressure.
Even with reports of Mt.Gox sending over 91k Bitcoins to Kraken for distribution in the next two weeks, the crypto market has maintained a bullish outlook. Bitcoin’s fear and greed index surged to around 65%, indicating greed, up from 25% extreme fear last week.
The ongoing mainstream adoption of digital assets and web3 projects by institutional investors has raised the likelihood of an altseason in the near future. Moreover, the US SEC granted preliminary approval for three spot Ether ETF issuers to commence trading next week. This anticipated altseason could be triggered by the expected reversal of Bitcoin dominance, which has been above 50%.
Veteran trader Peter Brandt suggested that the crypto market might enter a parabolic phase in the coming months, potentially driving Ether to a new all-time high. He based his prediction on the fact that most digital assets have bottomed out after consolidating over the past four months.
In conclusion, the crypto market is poised for potential growth, with various factors contributing to a positive outlook for digital assets in the near future.
