Bitcoin and the U.S. led capital inflows into crypto-backed products as investors seized lower-priced market opportunities.
According to CoinShares research, investors parked $1.44 billion in crypto vehicles, with $1.35 billion flowing into Bitcoin (BTC) ETFs in the U.S. and other regions. These numbers marked Bitcoin’s fifth-largest weekly influx and propelled the total crypto product inflows for 2024 to $17.8 billion.
Altcoins like Ethereum (ETH) also enjoyed positive investor attention, drawing in $72 million last week. This year’s inflows have eclipsed 2021’s $10.6 billion and continue to set new records for digital asset investments.
Crypto markets up again
Cheaper crypto prices seen last week incentivized investors to splurge on digital asset investment products, leading to a market revival noted on Monday. The total crypto markets rose 3.9%, recovering to $2.4 trillion. Bitcoin’s 5.2% surge in 24 hours allowed the token to reclaim $62,500, slashing the gap from its March peak to 15%.
QCP Capital researchers suggested that the market uptick was triggered by former President Donald Trump’s failed assassination and confidence that the pro-crypto presidential aspirant has a better chance of being elected over President Joe Biden. The firm also cited exhausted selling from German authorities. An excerpt from the QCP report reads:
“We think that the market was already positioned for a rally with the German government having exhausted their supply and also with large hedge funds aggressively buying calls last week. Trump was the perfect trigger for a market raring to go long.”
