Cryptocurrency market sees a surge with Bitcoin reaching a peak of $109K; Ethereum witnessing substantial inflows, according to CoinShares report
Bitcoin reclaimed the $109,000 mark on Monday morning, according to data from CoinGecko, after a 4% drop on Friday. However, the world's largest cryptocurrency by market capitalisation saw just $748 million worth of inflows in the week, almost half that of Ethereum's.
Ethereum, on the other hand, has been a standout performer. It accounted for $1.42 billion or 57.26% of all crypto inflows in the week, according to CoinShares. The digital asset also dominated institutional crypto inflows in August, accounting for 57% of the $2.48 billion that the market attracted.
Ethereum's weekly drop is 4.3%, while Bitcoin's is 2%. Despite the recent dip, predictors on Myriad Markets believe that it is a 52% chance that Bitcoin dominance will hit 63% next. This suggests that Ethereum could continue to outperform Bitcoin in the short term.
Ethereum's dominance was not limited to the week. In August, Ethereum has seen a monthly inflow of $3.96 billion, while Bitcoin has seen an outflow of $301 million. The CoinShares study on institutional crypto influences in August was conducted by CoinShares Asset Management, a subsidiary of CoinShares International Limited, which stated that Ethereum dominates the influences related to cryptocurrencies.
The entire cryptocurrency market attracted weekly inflows of $2.48 billion, CoinShares said. Altcoins like Filecoin, Polygon, and Mantle posted weekly gains, indicating a broader positive sentiment in the market.
However, the release of Core PCE data disappointed digital asset investors and failed to support expectations of a Federal Reserve rate cut in September. As a result, crypto liquidations topped $500 million on Friday. CoinShares Head of Research James Butterfill noted that inflows were strong throughout the week but turned negative on Friday after the release of Core PCE data.
In terms of geographical distribution, the U.S. drew in $2.29 billion in crypto inflows last week. Switzerland, Germany, and Canada saw inflows of $109.4 million, $69.9 million, and $41.1 million respectively last week.
In conclusion, while Bitcoin reclaimed its high price on Monday, Ethereum continues to lead the charge in terms of inflows and performance. The market remains volatile, with the potential for both gains and losses, as demonstrated by the recent Core PCE data-induced sell-off.
