A recent report from CoinShares, published on July 10, reveals Bitcoin dominance as the digital asset market has experienced a positive trend for the third consecutive week, fully offsetting the previous nine weeks of outflows. This week alone, the market recorded impressive inflows of $136 million, demonstrating a significant shift in investor sentiment.
Bitcoin funds have remained at the forefront, continuing to attract a majority of the inflows. In fact, 98% of the total inflows have poured into Bitcoin, solidifying its dominance. The remaining 2% of inflows were primarily directed towards Ether, multi-asset holdings, and select altcoins.
Bitcoin Inflows Sustain Momentum
The momentum of Bitcoin inflows shows no signs of slowing down, as the previous two weeks marked yearlong highs. Just last week, Bitcoin inflows amounted to $123 million, and this week witnessed an additional $10 million inflow. This remarkable two-week haul for Bitcoin alone totals an impressive $256 million.
Bitcoin’s continued inflows have resulted in an extension of its total market capitalization. From last week’s 51.46% share, Bitcoin’s dominance in the crypto market has now risen to a reported 51.59% as of July 12.
Blockchain Equities Experience Significant Inflows
Exciting news for hodlers as blockchain equities also experienced a surge in inflows, reaching a yearlong high of $15 million. This noteworthy increase more than doubled last week’s figure of $6.8 million. The consecutive outflow streak of nine weeks has finally been broken, as reported by CoinShares.
Despite the positive inflow trends, it is worth noting that the overall liquidity in the market appears to be declining. CoinShares’ report indicates that trading volume has hit a “seasonal low,” aligning with historical cycles that have demonstrated lower liquidity during July and August.
Investor Nervousness Amidst Lack of Clear Trend
Although the market has been experiencing positive news with consistent inflows, some investors are growing nervous due to the absence of a clear trend. The optimism generated by the anticipation of authorization for BTC as a spot exchange-traded fund offered by one or more companies seems to be tapering off as the process drags on.
Furthermore, uncertainty lingers as the U.S. Securities and Exchange Commission’s ongoing litigation against Binance and Coinbase continues without a clear resolution in sight. This legal battle adds an additional layer of uncertainty to the market, leaving investors cautious about potential outcomes.
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