The cryptocurrency market remains quiet, with net inflows of just US$2.9 million last week, according to digital asset investment firm CoinShares’ weekly digital asset fund flows report.
- “The summer doldrums are here, but in line with seasonal expectations,” wrote James Butterfill, a CoinShares’ investment strategist.
- Bitcoin investment products saw net outflows of US$10.4 million last week on the back of profit taking. Year-to-date inflows for Bitcoin totaled US$4.1 billion. Trading volume was US$9.3 billion per day last week — 30% of the year-to-date average last week, but Butterfill was not overly concerned, writing: “We do not believe this represents something ominous in the market as we saw similar seasonal dips in volumes during summer months in recent years.”
- Ethereum continued to see inflows — its third consecutive week — ahead of its London upgrade in August. Last week’s inflows totaled US$11.7 million and bring year-to-date inflows close to US$1 billion.
- Other altcoins continue to see minor inflows of less than US$0.5 million each: Cardano (US$0.4 million), Polkadot (US$0.3 million) and XRP (US$0.3 million).
- Justin Chuh, a senior trader at Wave Financial, said in an emailed weekly market update: “Be patient, let it play out — four weeks ago everyone was freaking out about BTC’s ‘Death Cross,’ yet now we’re practically at the same levels. Four weeks prior to that, BTC started slowing its descent from the May overleveraged cascading. Zooming out to four months before that, we’re still at the same level but with lesser degrees of euphoria, panic and [fear of missing out].”