Earlier this week, crypto asset manager CoinShares had issued a report saying that the capital influx in cryptocurrency funds alongside associated products had been spiked to a blowout $5.6 billion this year thus far, pointing towards investors’ optimism of a broad-based adoption of crypto assets over the coming weeks as the original cryptocurrency, bitcoin, has been hovering close to its all-time highs.
On top of that, data from CoinShares released earlier this week had also unveiled that the amount of assets investors had poured into the crypto funds this year, were up over 600 per cent compared to the same time a year earlier, suggesting a robust presence of a number of deep-pocket players into the crypto market alongside a rapidly growing corporate interest on crypto assets.
Bitcoin interest skyrockets as US Dollar depreciate
In point of fact, latest leg of Bitcoin-buying spree that lifted the largest crypto assets into an all-time high with rooms for potential upside momentum ahead, came forth as investors seemed to be contemplating bitcoin as a windshield against lukewarm inflation alongside a risky gamble against a sharply softening US Dollar.
US Dollar Index (DXY) measured against a basket of six major currencies on an average fell as much as 6.4 per cent year-to-date. Concomitantly, CoinShares had also added on its report that the inflows in fresh liquidities into the crypto market amounted to as many as $19 billion this year, remarking a meteoric rise of roughly 600 per cent compared to an only $2.57 billion in crypto assets under management at the same time a year earlier.
In tandem, investors had funnelled an approximated $15.6 billion into bitcoin and related assets, while Ethereum, which had been subject to a number of lawsuits last year, largely due to a swathe of unregulated ICOs (Initial Coin Offerings) based on Ethereum, had totalled about $2.5 billion in fresh capital inflows.
Besides, before the Christmas holidays, Bitcoin were trading at $23,358.90, while Ethereum stood at $603.4. Meanwhile, referring to a soaring investors’ interest on crypto assets amid an apparent lack of space for growth in global equity markets alongside a heavily battered commodity market, mostly dented over pandemic-led worries, a senior technical analyst at StockCharts, a technical analysis platform for online traders, Julius de Kempenaer said, “It’s no secret that there are a few big players in the bitcoin/crypto space and that it is mostly crowded with retail-related traders and investors. ”