Bitcoin has once again taken the lead in the cryptocurrency market as investment inflows into digital assets rise. According to CoinShares, the last four weeks have seen a total of $742 million flowing into crypto investment funds, marking the largest inflow run since Q4 2021. This positive momentum comes after a streak of nine weeks’ worth of outflows.
One contributing factor to this upward trend may be the recent legal decision in the Securities and Exchange Commission v. Ripple lawsuit, which favored the crypto community. Following the ruling, the XRP token experienced a significant surge, leading to an overall increase in positive sentiment within the market. However, despite four consecutive weeks of positive inflows, the “Fear and Greed Index” for cryptocurrencies returned to a neutral rating as of July 17.
Bitcoin remains the dominant player in fund traffic, accounting for 99% of all inflows with a weekly total of $140 million. On the other hand, Ethereum saw outflows amounting to $2 million, making it the asset with the highest total outflows year-to-date.
While Bitcoin continues to assert its market dominance, its overall market capitalization has shown slight fluctuations week-over-week, reflecting relatively subdued price action. As of July 17, Bitcoin’s market dominance rate stands at 50.18%, according to TradingView.
Geographically, the United States and Canada witnessed the majority of digital asset activity, with $109 million and $28 million in inflows, respectively. Most other regions experienced outflows, except for Switzerland, which surpassed the European market with $3.3 million in inflows, bringing its monthly total to $12.2 million.
Overall, Bitcoin’s strong performance and market leadership have driven the recent influx of funds into the crypto market. However, Ethereum’s outflows highlight the need for investors to diversify their portfolios and consider alternative cryptocurrencies alongside Bitcoin.