Bitcoin Trade Volumes Beat YTD Average As Inflows Resume: Are Bulls Taking Over?
05 September 2023 - 6:00PM
NEWSBTC
Bitcoin, the world’s largest cryptocurrency, has had a few progress
and setbacks in the past year. This has been reflected in digital
asset investment products. However, new data shows that while
outflows from digital investment products have dominated for
another week, Bitcoin has shown some resilience to record a weekly
inflow of $3.8 million. Bitcoin Trading Volume 90% Above The
YTD Average In its latest report on digital asset investment
products, Coinshares has shown Bitcoin investment products received
net inflows despite the whole market seeing minor outflows. During
the same time period, trading volumes spiked to more than 90% above
the YTD average. Related Reading: Expert Market Analysts Agree A
Spot Bitcoin ETF Is A Matter Of When, Not If Regulatory issues have
bombarded BTC in the past week, and the asset has shown uncertainty
about what’s next to come. In particular, August concluded with a
Bitcoin setback as the SEC announced a decision to delay its ruling
on some Bitcoin spot Exchange Traded Funds (ETFs)
applications. As a result, the price of BTC dropped from
$28,000 to $25,400 in the space of 48 hours. But despite this
decrease, digital asset investment products trading volume reached
$2.8 billion. Outflows in digital asset funds have been consistent
for the past seven weeks, totaling $342 million. Last week, chains
like Polygon and Ethereum saw outflows of $8.6 million and $3.2
million, respectively, contributing to a total net outflow of $11.2
million across all assets. On the other hand, Bitcoin
registered net inflows of $3.8 million. Solana also registered net
inflows of $0.7 million, bringing its inflow streak to nine
consecutive weeks. However, total assets under management (AuM)
have fallen 48% from this year’s peak. BTC price loses $26,000
support | Source: BTCUSD on Tradingview.com Is A Shift Toward
Positive Sentiment Imminent? The uptick in activity and investment
is a good sign for the market and hints at growing mainstream
interest in Bitcoin. However, this could end up being short-lived.
Considering BTC is just like any other asset, sentiment is mostly
based on news surrounding the crypto industry. So a consecutive
weekly inflow to Bitcoin digital asset funds would suggest a change
in sentiment. Related Reading: Here’s What Bitcoin Price The Bull
Market Will Start According To This Analyst The outlook for BTC and
the broader crypto market for the rest of 2023 is still cautiously
optimistic. Experts from JP Morgan have predicted that the SEC will
be forced to greenlight several spot Bitcoin ETFs, and former US
Securities and Exchange Commission (SEC) Chair Jay Clayton, has
also called the approval inevitable. Nevertheless, the past 24
hours have seen the trading volume of Bitcoin increase by more than
11% to reach $10.87 billion. Of course, higher trade volumes don’t
necessarily mean prices will skyrocket. But they show more people
are buying and selling BTC, indicating stronger sentiment and
momentum. Featured image from iStock, chart from Tradingview.com
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