The global crypto market cap was trading at $2.52 trillion at the time of writing, after rising 4.66% in the past 24 hours. This bullish sentiment was supported by digital asset investment products, which saw inflows worth $1.1 billion in the past week.
According to CoinShares’ weekly report, the $1.1 billion inflow was “the largest weekly total since early January.”
According to the reportThis shift in sentiment was linked to the upturn in risk appetite following the ‘immediate ceasefire’ announced on April 8. Although both the US and Iran agreed to a deal to halt escalating geopolitical tensions, the ceasefire was temporary.
Adding to this bullish push was “softer-than-expected US spending and CPI data.” This indicated an increase in the chances of interest rate cuts by the Federal Reserve, leading to positive sentiments in the crypto market.
What else happened in the past week?
In addition to the record inflows, trading volumes rose 13% week-on-week to $21 billion. However, this figure remains “well below the annual average of $31 billion.” Although there was recovery across the sector, total assets under management (AuM) remained also recovered to levels last seen in early February.
However, the Crypto Fear and Greed Index, which was still in the ‘Extreme Fear’ zone, underlines that there remains room for a stronger bullish push.
Winners and losers
Scrolling back to the past week, Bitcoin [BTC] was the leader, recording inflows worth $872 million. This in turn resulted in inflows of $2 billion this year (YTD).
Needless to say, Ethereum [ETH] also reflected similar sentiments as it witnessed an inflow of $196.5 million. However, thanks to the YTD flow, it is the only asset still in the net outflow. At the same time Ripple [XRP] registered an inflow of $19.3 million, but Solana [SOL] saw a small outflow of $2.5 million.
Will the momentum hold?
However, the start of the new week was not strong enough to maintain this influx. On April 13, the Spot BTC ETF recorded outflows worth $291 million, while the Spot ETH ETF recorded inflows of $9.5 million. Spot SOL ETF recorded zero capital flows, while Spot XRP ETF saw inflows of $1.46 million.
The on-chain metrics of Bitcoin, Ethereum, and Solana also reflected these sentiments. While BTC and ETH are showing stronger MVRV ratios, Solana’s volatile spikes in social volume indicate the near-term noise continues.
Despite the geopolitical turmoil, the US recorded inflows of $1.06 billion, accounting for 95% of the weekly total. Germany followed the US with an inflow of $34.6 million. Meanwhile, Canada and Switzerland saw minimum inflows of $7.8 million and $6.9 million, respectively.
Final summary
- Bitcoin led last week’s inflows with $871 million.
- Total Assets Under Management (AuM) also rose to early February highs, signaling an overall peak.