Flows of crypto investments total $2B - Is a Bitcoin surge to $100K imminent?
*Barreling Toward Bullish Tides: Crypto Fund Inflows Keep Climbing Amid Fed Uncertainty*
Hey there! Let's delve into the buzzing world of cryptocurrency, as funds continued to pour into the sector last week, bringing the total inflows to a mighty $5.4 billion over the past fortnight! But will this trend persist this week as we tiptoe up to the highly anticipated Fed rate decision?
Galloping Gains for Crypto Funds
According to the latest CoinShares' weekly report, these digital asset products enjoyed a hearty $2 billion influx during the recent week. Recall that the prior week witnessed a staggering $3.4 billion demand for crypto ETFs, a surge that coincided with President Trump winking at the possibility of a U.S-China deal on tariffs.
Blazing Leaders among Cryptos
Breaking down the asset performance, Bitcoin [BTC] products led the pack with a whopping $1.84 billion in demand. Ethereum [ETH] followed closely on its heels with $149 million inflows.
In contrast, XRP maintained its altcoin crown yet again, attracting $10.5 million last week. Slightly behind, Solana's [SOL] interest hit only $6 million, though it was a notable improvement over Sui's puny $0.3 million. Interestingly, SOL significantly improved from the $5.7 million in outflows it saw the week before, while Sui's inflows nose-dived nearly 20x over the same period.
Flickering Fortunes of Leading Cryptos
Due to the sustained inflows, Bitcoin surged near the $98,000 mark. However, it quickly shed 4% of its recent recovery gains, slipping to $94,000 at the time of writing, just prior to the Fed rate decision on Wednesday. The future demand for Bitcoin and the entire crypto market will hinge on how the market responds to the Fed's announcement.
On the price chart, Bitcoin was surging towards the $92k range low and support. If the price action keeps above the previous range-low and critical moving averages, price enthusiasts may still be dreaming of a $100k milestone. Conversely, a sustained dive below $92k and the moving averages could dash the $100k aspirations.
A Ride Through the Crypto Landscape
As we ride the crypto rollercoaster, it's worth noting that the trend of inflows mirrors a blend of optimism and tentativeness in the market, especially since Bitcoin has stormed past the $100,000 barrier for the first time since February. Here's what the landscape looks like concerning crypto fund inflows in the context of the upcoming Fed rate decision:
Scooping the Scoop on Crypto Fund Inflows
- Total Inflows: Crypto funds have amassed considerable inflows, pocketing $882 million this week alone, adding to the year-to-date total of $6.7 billion[2][5].
- Bitcoin Dominance: Bitcoin holds the lion's share of investor interest, pocketing $867 million of the weekly inflows[5].
- Regional Variations: The United States was the leading regional investor, packing in $839.7 million in inflows, followed by Germany with $44.5 million[5].
A Closer Look at Bitcoin ETFs
- Weekly Inflows: Bitcoin-backed funds recorded $600 million in net inflows, a 67% decrease from the previous week's $1.81 billion[3].
- Institutional Appetite: Despite Bitcoin reaching new heights, institutional fervor seems cautious, with some investors preferring to bank gains or wait for a price stabilization[3].
- BlackRock's Bitcoin ETF: Surprisingly, BlackRock's Bitcoin ETF, IBIT, has embarked on a streak of consecutive inflows, booking $356 million on May 9 and $1.03 billion over the past trading week[4].
- Despite Bitcoin's surge past the $100,000 barrier, institutional interest in crypto seems cautious, with some investors preferring to bank gains or wait for price stabilization.
- Bitcoin-backed funds recorded a decrease in net inflows, with only $600 million compared to the previous week's $1.81 billion.
- Contrasting XRP's altcoin crown, Solana showed a notable improvement, attracting $6 million in interest compared to the previous week's $5.7 million in outflows.
- Similar to Solana, Sui also experienced an improvement in interest, with inflows of $0.3 million compared to the previous week's nearly 20x smaller inflows.
- Astotal inflows continue, Bitcoin surged to the $98,000 mark but quickly shed 4% of its recovery gains, slipping to $94,000 at the time of writing, before the upcoming Fed rate decision on Wednesday. The demand for Bitcoin and the entire crypto market will likely hinge on the market's response to this decision.
