Bitcoin accounted for the largest share of total inflows last week, while Ethereum recorded its highest inflows since March, reaching $69 million.
A total of $2 billion was recorded in inflows into cryptocurrency asset investment products during the first week of June, taking the five-week inflows to over $4.3 billion. Moreover, the trading volume of all cryptocurrency ETPs last week was a whopping $12.8 billion, up 55% from the previous week.
CoinShares saw inflows from almost all providers, with outflows from existing providers slowing noticeably. This change in sentiment is due to weaker-than-expected macroeconomic indicators in the United States. Moreover, with the US scheduled to release CPI and PPI data for May, all eyes will be on the Federal Reserve’s decision to cut interest rates this week.
CoinShares said this favorable price action has resulted in total assets under management (AuM) exceeding $100 billion for the first time since March of this year.
Bitcoin (BTC) remains the main focus, recording inflows totaling $1.97 billion for the week. In contrast, Short-Bitcoin experienced an outflow of $5.3 million for three consecutive weeks. Ethereum (ETH) saw its highest inflows since March, reaching $69 million. This surge is likely a response to the unexpected SEC decision to allow spot-based ETFs.
Bitcoin and Ethereum hold steady ahead of key macro data releases.
Bitcoin and Ethereum prices showed little movement over the weekend, with open interest and trading volume declining after $400 million in leverage was leaked on Friday. However, with Wednesday’s CPI release underway, there is a good chance that market volatility will return to the cryptocurrency market.
A record increase in leverage in Bitcoin futures hit the bull market as markets plunged Friday after the release of Non-Farm Payroll (NFP) data. NFP numbers exceeded expectations. The U.S. economy added 275,000 jobs, compared to an expected 185,000. As a result, Bitcoin plummeted from $71,000 to $69,000. The employment data dampened prospects for an immediate interest rate cut from the Federal Reserve.
However, QCP Capital believes the Fed will not keep interest rates higher for much longer. “We agree that this is a great opportunity to buy the dip, as the market will increasingly price at least one Federal Reserve rate cut. “As other countries around the world continue to cut interest rates, it will be difficult for the U.S. to ignore them,” QCP Capital said.
Last week, the European Central Bank (ECB) and the Bank of Canada announced interest rate cuts, triggering a cycle of monetary easing.
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