Ethereum, on the other hand, experienced $2 million in outflows and continues to have the highest outflow rate for the year.
Digital asset inflows increased by $137 million in a fourth straight week of growth, with Bitcoin leading the market. This pattern virtually reverses the nine weeks of outflows that came before it, bringing the total inflow over the past four weeks to an astonishing $742 million. The run of inflows is now at its highest level since the fourth quarter of 2021, signaling a significant shift in market sentiment.
Crypto Community Victories: Ripple Lawsuit and XRP Soar
This ongoing upward trend has been influenced by a number of variables. A recent court victory for the cryptocurrency community in the Securities and Exchange Commission (SEC) v. Ripple litigation is one important determinant. The market reacted enthusiastically as the XRP cryptocurrency skyrocketed as a result of the verdict favoring Ripple.
The “Fear and Greed Index” for cryptocurrencies recorded a rating of 56 for the market’s overall attitude, which indicates increased positive emotion or “greed.” However, despite the four weeks of continuous inflows into cryptocurrency investment products, as of July 17, the index returned to a “neutral” rating.
Bitcoin Dominance and Market Capitalization
With 99% of all inflows and $140 million in total for the week, bitcoin continues to rule the digital asset market. Other cryptocurrencies, such as Ether, which continues to have the biggest overall outflows year-to-date, saw outflows of $2 million.
The relatively calm price action for the biggest cryptocurrency has caused slight swings in the market capitalization of Bitcoin. According to TradingView, the market domination rate for Bitcoin as of July 17 is 50.18%.
United States and Canada Lead, Switzerland Shines
With inflows of $109 million and $28 million, respectively, the United States and Canada emerged as the main centers of activity for digital assets. With the exception of Switzerland, which outperformed the European market with inflows of $3.3 million, most other regions saw outflows. The current remarkable monthly total for Switzerland is $12.2 million.
🔎 Let’s have a look at last week’s fund flows with CoinShare’s Head of Research James Butterfill.— CoinShares (@CoinSharesCo) July 17, 2023
Digital asset investment products saw US$137m of inflows last week.
The crypto market exhibits resiliency and a renewed sense of hope as the favorable inflows into digital assets continue and Bitcoin maintains its grip. These patterns demonstrate how cryptocurrencies are still developing and are becoming a more accepted asset class.