Bitcoin maintains its dominance in the cryptocurrency market with a third consecutive week of positive fund inflows, effectively offsetting nine weeks of previous outflows, according to a report by CoinShares published on July 10. The total inflow for this week reached $136 million, with 98% coming from Bitcoin and the remaining 2% from Ether, multi-asset holdings, and a few altcoins.
This ongoing trend indicates Bitcoin’s resilience and reaffirms its position as the anchor digital asset. Over the past two weeks, BTC alone received inflows of $256 million, contributing to an increase in its market share from 51.46% to 51.66% as of July 11.
In addition to Bitcoin’s strong performance, blockchain equities experienced a significant boost, recording a year-long high of $15 million in inflows. This surpasses the previous week’s influx of $6.8 million and interrupts a nine-week streak of outflows.
However, despite the positive news regarding fund inflows, trading volume has slowed down. This decline in liquidity aligns with the seasonal patterns observed in previous years, where lower volumes are typically seen during the months of July and August.
Investor sentiment appears to be mixed, as some express concerns about the absence of a clear trend in the market. The initial optimism surrounding the potential approval of Bitcoin-based exchange-traded funds (ETFs) by the U.S. government may be waning as the authorization process continues. Moreover, ongoing litigation involving the Securities and Exchange Commission and major cryptocurrency exchanges Binance and Coinbase adds an air of uncertainty to the market.
Overall, Bitcoin’s dominance remains intact amidst a positive trend of fund inflows that correct previous outflow patterns. While trading volume may be temporarily reduced due to seasonal effects, the market continues to evolve, influenced by regulatory developments and investor sentiment.