Key Takeaways:
- Crypto investment products attracted $1.24B last week, marking 10 straight weeks of inflows.
- A U.S.-Iran conflict led to $701M in crypto liquidations, mostly from long positions.
- Bitcoin and Ethereum continue to draw investor interest despite market volatility.
The crypto asset sector notched a major milestone last week as investment products marked their tenth consecutive week of inflows.
With the most recent data by CoinShares, inflows climbed to $1.24 billion during the week, putting the year-to-date at a record $15.1 billion. This constant buying is a testament to active institutional and retail demand, mainly for Bitcoin and Ethereum, even with prices swinging wildly.
Region-wise, the U.S. was the highest performer with inflows of $1.25 billion. Canada and Germany were at the second and third positions with $20.9 million and $10.9 million, respectively. However, the bullish mood was marred by outflows from Hong Kong and Switzerland of $32.6 million and $7.7 million, respectively.
Bitcoin dominated again by adding $1.1 billion despite price corrections in the past few days. The trend continues to be that investors perceive corrections as points of buying. This trend was again reflected by minor unwinds from bearish Bitcoin products, with only $1.4 million unwinding in bearish positions.
Ethereum’s Record-Breaking Streak Shows Strength in Altcoin Sector
Ethereum also had shining numbers with its ninth-straight week of inflows. In the week, $124 million came in to ETH-dedicated funds, which took the cumulative running total of the period to $2.2 billion. This is the longest sequence of consecutive inflows since 2021 and reflects a pendulum swing of investor sentiment back towards Ethereum’s longer-term trajectory.
Other altcoins, including XRP and Solana, chipped in their share, with Solana contributing $2.78 million and XRP contributing $2.69 million. This trend indicates investment interest continues to grow beyond Bitcoin and Ethereum alone, with platforms that have distinct uses being more popular. James Butterfill, Research Head at CoinShares, noted that the most recent trends suggest strategic buying amid market uncertainty.
Geo-Tensions Spark $701M Crypto Liquidations
Despite intense inflow momentum, the cryptocurrency market dropped sharply during the weekend. Prices of digital currencies dipped in the wake of announcements of U.S. military attacks on Iranian nuclear facilities. Figures from CoinGlass showed that positions of more than $701 million were settled, of which a record $618.69 million were in long bets.
Bitcoin alone saw $152 million in liquidations, of which $125 million were of long positions. Ethereum was even more affected, losing $296 million in liquidations, of which $269 million were of long positions.
Total market capitalization declined to $3.25 trillion, down by 4.4% on a single day, with investor anxiety gaining a temporary upper hand on bullish momentum of inflow. This incident serves to illustrate that global geopolitical news can easily reverse mood in the crypto market even on the back of persistent institutional demand.
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