A third consecutive week of positive inflows for digital assets has corrected nine previous weeks of market outflows, according to a report by CoinShares published July 10.
This week’s inflows were $136 million. Bitcoin (BTC) funds have continued their trend of holding primary positions, with 98% of inflows coming from BTC. The remaining 2% came mostly from ether (ETH), multi-asset holdings, and a handful of altcoins.
After nine weeks where digital asset inflows outpaced inflows, this third consecutive week of positive movement brings the current line total to $470 million. According to Coinshares, this total completely corrects the previous flush line.
This brings inflows for the last three consecutive weeks to $470 million, fully correcting the outflows of the previous nine weeks.
Despite the slowdown in trading turnover, which can be explained by seasonal effects, low trading volumes usually appear during July and August.
2/6 pic.twitter.com/4uyvrY0aRP
– CoinShares (CoinSharesCo) July 10, 2023
Bitcoin inflows showed no signs of slowing down in the past week after hitting year-time highs in the previous two weeks. As previously reported by Cointelegraph, last week’s BTC inflows amounted to $123 million. This week adds $10 million, bringing the two-week inflow volume for BTC alone to $256 million.
This continues Bitcoin’s dominance of the cryptocurrency market by expanding its total market cap from 51.46% last week to mentioned 51.66% of the stake as of July 11th.
In other good news for scammers, inflows of blockchain stocks have reached an all-year high of $15 million. This more than doubled from the $6.8 million last week, which cut nine weeks from its own outflow, according to Coinshares.
However, there could be some signs of balancing on the horizon, as overall liquidity appears to be declining. According to the report, trading volume has reached a “seasonal low,” mimicking cycles from previous years that saw liquidity thin in July and August.
Related: Bitcoin Supply Shock Will Send Bitcoin Price To $120K – Standard Chartered
Despite the continued positive news surrounding inflows, some investors seem concerned that there is no clear direction.
The positive sentiment generated by the expectation that one or more companies will receive a mandate from the US government to offer BTC as a spot exchange fund may wane as the process continues.
There also remains an air of uncertainty as the SEC’s ongoing litigation against Binance and Coinbase continues with no clear indication of how the courts will decide.