$2 Billion Inflow Is Coming to Bitcoin, But Ethereum Attracts Attention
The digital asset investment landscape witnessed a significant increase last week, with inflows into investment products reaching a total of $2 billion. Bitcoin (BTC) led the flows with a massive inflow of $1.97 billion. However, Ethereum (ETH) also attracted attention by experiencing a significant rise.
Bitcoin and Ethereum Inflows Increase
This momentum in crypto fund inflows extended a five-week streak, bringing total inflows to $4.3 billion. Trading volumes of Crypto Exchange Traded Products (ETPs) increased to $12.8 billion. Moreover, this indicates a 55% increase compared to the previous week. While inflows were observed across almost all providers, outflows from ETPs continued to slow down.
This change in sentiment is attributed to weaker than expected macroeconomic data in the US. Therefore, this situation gave rise to the expectation that monetary policy interest rates would be reduced sooner. As a result, positive price movements pushed total assets under management (AuM) above $100 billion for the first time since March.
Regionally, the US dominated inflows with a contribution of $1.98 billion. This includes the third largest daily entry recorded earlier in the week. BlackRock’s iShares Bitcoin ETF (IBIT) surpassed Grayscale Bitcoin Trust with $21 billion AuM.
Additionally, Bitcoin continued to be the main focus, receiving $1.97 billion in inflows throughout the week. Meanwhile, short Bitcoin products experienced a total outflow of $5.3 million for the third consecutive week. This indicates that market sentiment has shifted towards a bullish outlook towards Bitcoin.
However, Ethereum also attracted great attention, experiencing its best week entry since March with a total of $69 million. This increase is likely a reaction to the SEC’s unexpected decision to approve 19-b4s for Spot Ethereum ETFs. Additionally, the positive response from investors underscores the growing appeal and wider acceptance of Ethereum’s potential.
According to CoinShares data, altcoins have seen relatively modest activity; fantom (FTM) and XRP stood out. While Fantom recorded an inflow of $1.4 million, XRP followed closely with $1.2 million. Additionally, speculation of a potential XRP ETF in the US has also triggered a recent increase in inflows.
Also Read: How Will Bitcoin Benefit from the Expiration of the US-Saudi Petrodollar Deal?
This Week’s CPI & PPI Data
Cryptocurrency enthusiasts are closely watching key inflation data this week, along with the US Consumer Price Index (CPI) for May. The report is expected to be announced on Wednesday, June 12. CPI, along with Core CPI, are vital indicators that reflect price changes and changes in prices. It will provide a clear understanding of the current inflation scenario in the US
In addition, the US Producer Price Index (PPI) and Core PPI are important measures in evaluating inflation trends in the country. These figures for May are expected to be announced on Thursday, June 13, and more information will be provided.
The release of these inflation measurements will be critical in shaping the Federal Reserve’s future interest rate decisions. Following last week’s mixed US jobs data, upcoming CPI and PPI reports are crucial for Bitcoin and altcoin investors. This will set the stage for the Fed’s next move.
Recently the EU Central Bank cut interest rates by 0.25%, which spread optimism about a potential Fed rate cut, which in turn pushed the Bitcoin price higher. However, according to the current market perception, the Fed is not expected to cut interest rates. However, the upcoming press conference indicates that the Fed may take harsh steps to control inflation.
Also Read: SOL/BTC Price Prediction: Can solana Price Reach $200 As Bitcoin Falls?
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