CoinShares has released a report indicating that digital assets have experienced positive inflows for the third consecutive week, effectively reversing the outflows witnessed in the previous nine weeks. The inflows for this week amounted to $136 million. Bitcoin funds re main the dominant choice, accounting for 98 % of the inflows, with Ethereum, multi-asset holdings, and a few altcoins making up the remaining 2%. The total outflows over the past nine weeks amounting to $470 million have been completely offset by the recent inflows.
Bitcoin inflows have remained strong, maintaining their momentum after reaching new yearly highs in the previous two weeks. Last week alone, BTC inflows totaled $123 million, and an additional $10 million was added this week, resulting in a two-week inflow of $ 256 million for Bitcoin alone. Bitcoin's market capitalization also increased from 51.46% to 51.66% as of July 11, solidifying its dominance in the cryptocurrency market.
In addition to the positive inflows, blockchain stock inflows reached a one-year high of $15 million, more than double the previous week's figure of $6.8 million. This marks the end of a nine-week streak of outflows for blockchain stocks.
Despite the positive news on inflows, the report highlights a potential decline in overall liquidity, with trading volumes reaching "seasonal lows." This is consistent with previous periods of low liquidity observed in July and August. While the inflows are encouraging, s some investors are Apprehensive about the lack of a clear trend in the market.
The report also mentions the uncertainty surrounding the ongoing lawsuit between the US Securities and Exchange Commission (SEC) and major cryptocurrency exchanges Binance and Coinbase. As the legal proceedings continue, the positive sentiment driven by expectations of US government a authorization for a bitcoin spot exchange- traded fund may wane. The outcome of the lawsuit remains uncertain, leaving investors uncertain about the potential implications for the cryptocurrency market.
