According to a report published last week, the cryptocurrency market experienced a significant influx of $1 billion. This increase was primarily driven by Bitcoin (BTC), which accounted for 98% of the total inflows. Other top-performing coins such as Ethereum (ETH) and Cardano also saw a rise in momentum during this 7-day period.
However, amidst the positive trend, there were also reports of outflows amounting to $17 million. Canada and Germany were the top countries experiencing outflows, with $10 million and $7 million respectively.
The recent CoinShares report revealed that the Bitcoin exchange-traded fund (ETF) dominated last week’s inflows, pushing the total assets under management (AuM) to its highest level since early 2022 – reaching $59 billion.
In their own words, “Digital asset investment products saw inflows of $1.1 billion, bringing year-to-date inflows to $2.7 billion. AuM is at its highest level since early 2022 at $59 billion.”
This is a significant milestone for the market, as it was only in November 2021 when Bitcoin reached its all-time high of $65,000 USD.
Many experts believe that inflows are a positive indicator for future price trends. With the upcoming Bitcoin halving in April, there is increased speculation on how this event could affect the narrative around the large influx of money.
Investors are anticipating a possible price spike shortly after the halving. However, despite the huge inflows and price increases, Google Search Trends for Bitcoin show that the market is actually closer to a bear market.
On February 12, BeInCrypto reported that engagement has dropped by around 80% compared to the week of ETF approval and is back to bear market levels. This could be due to a decrease in mainstream media coverage and positive news about Bitcoin’s price, as opposed to previous cycles when it was a relatively unknown asset.
Despite this, the price of Bitcoin briefly exceeded $50,000 today for the first time in two years. As of publication, Bitcoin’s price is $49,912.
However, this hasn’t stopped the biggest players in the industry from accumulating digital assets. According to a report by BeInCrypto on February 11, Bitcoin whales have accumulated an additional 140,000 BTC in the past three weeks, injecting $6.16 billion into the market.