Key Points
- Total investments in crypto products last week amounted to $2 billion, with Bitcoin investments accounting for $1.97 billion.
- Short-term holders are skeptical about a potential increase in Bitcoin’s price.
CoinShares recently disclosed that the total value of investments made in cryptocurrency products last week was $2 billion. A significant portion of this, approximately $1.97 billion, was invested in Bitcoin (BTC).
Ethereum Investments
Furthermore, Ethereum (ETH) also saw considerable investment, with inflows of $69 million. This figure marks the highest capital inflow for the altcoin since its peak in March.
CoinShares releases its report weekly, providing insights into digital assets investments, including cryptocurrencies. The previous week saw both Bitcoin and Ethereum in the spotlight, indicating investor confidence in the coins’ potential.
Bitcoin’s Current Status
Despite this, Bitcoin’s price has remained relatively stagnant over the past week. James Butterfill, Head of Research at CoinShares, attributes this to weaker than expected macro data in the US. This has led to expectations of a forward monetary policy rate cut, resulting in a shift in sentiment towards Bitcoin.
However, the Short Term Holder- Net Unrealized Profit/Loss (STH-NUPL) metric suggests that short-term holders are not confident in Bitcoin’s price increasing in the short term. This lack of confidence could lead to a lack of demand and the price continuing to move sideways.
The Bulls and Bears indicator provided by IntoTheBlock tracks the activity of addresses that bought or sold 1% of the trading volume in the last 24 hours. Currently, this indicator for Bitcoin is neutral, suggesting that Bitcoin may continue to trade within a narrow range.
If the market conditions turn bearish, Bitcoin’s price could potentially drop to $68,000. On the other hand, if market conditions improve, Bitcoin could potentially rise to $71,000 again.
