12 Apr 2023 Josphat Kariuki
Bitcoin Breaks $30,000, As BTC Secures 98% Of Crypto Investments
On April 11, the European cryptocurrency investment company CoinShares released its most recent "Digital Asset Fund Flows Report," which showed that inflows of $57 million over the previous week managed to restore digital asset investment products to a net positive position for 2023. Despite the recent uptick, "volumes were low at $970 million for the week," according to CoinShares. Low volumes were also observed on the international Bitcoin exchange markets, as Bitcoin recorded "just 25% of the year-to-date average at $18 billion for the week."
Source: CoinShares
The report also reveals that investors in the United States, who contributed $27 million, were the main drivers of inflows. Positive mood was also evident in Germany, Switzerland, and Canada, where inflows totaled $17 million, $13 million, and $2.2 million, respectively. This indicates a general rise in confidence in digital assets.
The majority of investor attention was placed on Bitcoin, which at $56 million in inflows accounted for 98% of all inflows. Meanwhile, short Bitcoin positions experienced modest outflows of $0.6 million. In contrast, altcoins including Uniswap's UNI, Polkadot's DOT, and Polygon's MATIC recorded small inflows of less than $1 million each.
The article also points out that despite the Shapella upgrade to the Ethereum network due to happen on April 12, Ether inflows were just $600,000, suggesting that investors may be hesitant to invest in ETH until they are more certain of the upgrade's effects. The crypto sector also experienced modest inflows of $2.1 million into blockchain-related stocks, indicating a calm week overall.
Institutional investors attack
At an average cost of $28,016 per BTC on April 5, MicroStrategy added another 1,045 BTC to its expanding cryptocurrency portfolio. This transaction equals to almost $29.3 million. MicroStrategy`s co-founder and ex-CEO Michael Saylor has been a firm supporter of Bitcoin, advising companies to include the most popular cryptocurrency in their strategic asset allocation. He has repeatedly stressed his conviction that Bitcoin is the most dependable, secure store of value currently available on the market and offers a special way for businesses to protect their assets against inflation.
Bitcoin breaches $30,000 amid CPI-induced volatility
BTC/USD data from CoinMarketCap revealed the way of Bitcoin towards approaching and breaching its fresh ten-month high.
After the Consumer Price Index (CPI) numbers for March were released, the widely anticipated volatility started to take place. This largely met predictions, with the year-over-year growth outpacing forecasts by 0.2%.
According to an accompanying news statement from the U.S. Bureau of Labor Statistics, "the all items index increased 5.0 percent for the 12 months ending March; this was the smallest 12-month increase since the period ending in May 2021."
The CPI data was sufficient to encourage some positive growth in the cryptocurrency markets before the Wall Street opening, with the potential for additional growth in line with stocks to follow.
The most recent BTC price movement, however, strengthened longer-term bets that Bitcoin has successfully broken out of its bear market.
Rekt Capital, a well-known trader, and analyst saw that BTC/USD was maintaining its excellent daily close from April 11, which had brought it above a significant resistance trendline.
His most recent report claimed that "BTC is showing initial signs of a successful retest of the Higher High resistance into new support."
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