Bitcoin Trade Volumes Beat YTD Average As Inflows Resume: Are Bulls Taking Over?

Scott Matherson

1 year ago

3 mins read

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Bitcoin, the world’s largest cryptocurrency, has had a few progress and setbacks in the past year. This has been reflected in digital asset investment products. However, new data shows that while outflows from digital investment products have dominated for another week, Bitcoin has shown some resilience to record a weekly inflow of $3.8 million.

Bitcoin Trading Volume 90% Above The YTD Average

In its latest report on digital asset investment products, Coinshares has shown Bitcoin investment products received net inflows despite the whole market seeing minor outflows. During the same time period, trading volumes spiked to more than 90% above the YTD average.

Regulatory issues have bombarded BTC in the past week, and the asset has shown uncertainty about what’s next to come. In particular, August concluded with a Bitcoin setback as the SEC announced a decision to delay its ruling on some Bitcoin spot Exchange Traded Funds (ETFs) applications.

As a result, the price of BTC dropped from $28,000 to $25,400 in the space of 48 hours. But despite this decrease, digital asset investment products trading volume reached $2.8 billion.

Outflows in digital asset funds have been consistent for the past seven weeks, totaling $342 million. Last week, chains like Polygon and Ethereum saw outflows of $8.6 million and $3.2 million, respectively, contributing to a total net outflow of $11.2 million across all assets.

On the other hand, Bitcoin registered net inflows of $3.8 million. Solana also registered net inflows of $0.7 million, bringing its inflow streak to nine consecutive weeks. However, total assets under management (AuM) have fallen 48% from this year’s peak.

BTC price loses $26,000 support | Source: BTCUSD on Tradingview.com

Is A Shift Toward Positive Sentiment Imminent?

The uptick in activity and investment is a good sign for the market and hints at growing mainstream interest in Bitcoin. However, this could end up being short-lived. Considering BTC is just like any other asset, sentiment is mostly based on news surrounding the crypto industry. So a consecutive weekly inflow to Bitcoin digital asset funds would suggest a change in sentiment.

The outlook for BTC and the broader crypto market for the rest of 2023 is still cautiously optimistic. Experts from JP Morgan have predicted that the SEC will be forced to greenlight several spot Bitcoin ETFs, and former US Securities and Exchange Commission (SEC) Chair Jay Clayton, has also called the approval inevitable.

Nevertheless, the past 24 hours have seen the trading volume of Bitcoin increase by more than 11% to reach $10.87 billion. Of course, higher trade volumes don’t necessarily mean prices will skyrocket. But they show more people are buying and selling BTC, indicating stronger sentiment and momentum.

Featured image from iStock, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

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With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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