Following the most dramatic short-term disruption in network history, the overall crypto market is on the road to full recovery. Earlier, the on-chain analytics provider Glassnode reported that, despite the FUD, Bitcoin hashrate had largely recovered (s). As a result, there is a possibility of a mood boost for crypto investors.
Here are some statistics to back up my claim.
CoinShares, a digital asset manager, has released their weekly “Digital Asset Fund Flows” report. It tracked institutional investor capital inflows into crypto tokens, particularly Bitcoin. The first line read, “Growing investor confidence in digital assets with inflows of US$90 million.” The graph below illustrates this.
Last week, digital asset investment products saw inflows of US$90 million, marking the 7th consecutive week of inflows totaling US$411 million. Bitcoin, in particular, reaped the benefits of the sun after a period of dormancy. Here’s why it’s important. The largest cryptocurrency token
“…saw US$48 million inflows last week. After experiencing the longest run of outflows on record, Bitcoin has now experienced its third week of inflows totaling US$115 million.”
A possible reason was also mentioned in the report. “We believe this decisive shift in sentiment is due to growing investor confidence in the asset class.” This, combined with more accommodative statements from the US Securities and Exchange Commission and the Federal Reserve, undoubtedly contributed to the surge.
Consider the figures above: while BTC produced some massive figures, altcoins- in general- had a mixed performance. Despite another week of inflows, Ethereum, the largest altcoin, lost market share.
“Ethereum saw another week of inflows totaling US$20 million, though it has lost market share to Bitcoin in recent weeks, falling from a peak of 28 percent to 25 percent,” according to the report.
Polkadot, Tezos, and Binance also experienced outflows totaling US$0.8 million. Cardano and Solana, on the other hand, painted a slightly different picture. The aforementioned tokens received minor inflows totaling US$1.1m and US$0.7m, respectively. Nonetheless, volumes remained low last week, at US$2.4 billion, compared to US$8.4 billion in May 2021.
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In a recent interview, CoinShares chief strategy officer Meltem Demirors also shared her bullish narrative.
“I think the most important thing, honestly, is that there is a lot of cash sitting on the sidelines, and a lot of investors are now seriously considering a Bitcoin allocation in their portfolios.”
Furthermore, according to the data below, the flagship token has officially become the best performing asset of 2021.
— Bitcoin (@Bitcoin) October 4, 2021