CoinShares data shows that the crypto market has been experiencing a strong upswing, driven by a favorable sentiment.
Last week crypto products attracted $530m in investment, which was the most in 5 weeks. Investors were responding to doveish signals coming from Federal Reserve According to an a report James Butterfill, the head of CoinShares research.
He said that despite the fact that trading volume was lower in comparison to recent weeks. “remained high, reaching $9 billion for the week” Powell’s comments, which hinted at an interest rate reduction as soon as September, triggered significant market activity.
Hong Kong, Switzerland, and the U.S. all saw increases of between $16 million to $14 million. Butterfill noted that Germany, which bucked this trend by having outflows of $9million totaled as its exception. “one of the only countries with net outflows year-to-date.”
BitcoinBTCButterfill noted that BTC was the main beneficiary of the $543 million inflows, highlighting its vulnerability to changes in expectations of interest rates. The bulk of BTC flows took place on Friday August 23rd, immediately after Powell’s remarks.
Ethereum (ETHCoinShares’ head of Research, Michael Smith, said that while Ethereum ETFs (which track the cryptocurrency) have seen a contrasting movement with $36 million in outflows last week, they’ve gained momentum, and attracted $3.1 Billion in inflows during the past month. “partially offset by outflows from the Grayscale Trust of $2.5 billion.”
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Source: crypto.news