The month of January was responsible for a downward spiral in the crypto market. And the downward trend was also responsible for reducing cash flows for all digital assets. However, for the third week in a row, the trend appears to be reversing with a recovery underway.
Although it briefly crossed the crucial $45K level today, Bitcoin has recovered 13% in the past week. In the past 24 hours, the global cryptocurrency market cap on CoinGecko has increased by more than $2 trillion.
According to CoinShares’ Digital Asset Fund Flows Report for the week ending Feb. 4, sentiment continues to improve with third week inflows totaling $85 million.
The report further provides an asset-wise split, with Bitcoin once again leading the week with inflows of $71 million. This figure reportedly marks the largest influx since early December, a time before sentiment deteriorated.
In the past three weeks, cumulative inflows were $108 million. The report emphasized,
Volumes in Bitcoin investment products remained low at US$1.8 billion last week versus US$3.4 billion the previous week.
On the contrary, Ethereum registered an outflow for the ninth week, while other altcoins such as Solana, Polkadot, Terra and Cardano saw inflows of $1-$2 million. However, what is worth noting is that despite the recurring outflows, Ethereum has seen a healthy 15% increase in the past week.
While the picture is not entirely rosy for the digital asset market, there is positive news for cryptocurrency adoption on the institutional front. KPMG Canada revealed yesterday that it has added Bitcoin and Ethereum to its corporate treasury. Furthermore, even Coinshares noted that while Europe has seen an inflow of $10.3 million, the bulk of the funds came from Brazil and Canada (US$75 million).
Meanwhile, MicroStrategy, a company that is heavy on Bitcoin for over 90% of its coffers, doesn’t seem to be hitting the pause button. The company reportedly added 660 BTC worth about $25 million between December 30, 2021 and January 2022.
Regarding BTC, Saylor told Yahoo Finance:
“My time horizon is a decade or more.”
That said, Wells Fargo Investment Institute has called crypto a “viable investment tool” in a recently released report. In addition, it highlighted the parallels of cryptocurrencies and the early days of the Internet as an investment opportunity, as noted by several analysts in the past.
This post Fund Inflows Support Bitcoin’s Recovery Story, But This Crypto Is Lagging
was published first on https://ambcrypto.com/fund-inflows-support-bitcoins-recovery-story-but-this-crypto-continues-to-lag/