Bitcoin Sees $2B Inflows, Ethereum Takes Center Stage: What’s The Buzz?

Bitcoin surged with $2 billion in inflows as crypto ETF investment soared last week, but Ethereum stole the show with a remarkable spike in net flows.

Bitcoin Reigns with $2 Billion Inflows, Ethereum Emerges Strong

The influx of funds into the crypto market extended a five-week streak, propelling total inflows to an impressive $4.3 billion. This surge was primarily driven by Spot Bitcoin Exchange-Traded Products (ETPs), indicating a burgeoning interest in the leading cryptocurrency. Notably, Ethereum also experienced a surge in inflows following the SEC’s approval of Spot Ether ETFs, signalling growing investor confidence in the second-largest cryptocurrency.

The surge in inflows into the crypto market comes amidst weaker-than-expected macroeconomic data in the US, leading to speculations of earlier monetary policy rate cuts. Consequently, positive price movements have propelled total assets under management (AuM) beyond the $100 billion mark for the first time since March, reflecting renewed investor optimism in the digital asset space.

Regionally, the United States dominated inflows, contributing a significant portion of the total influx. This surge was fueled by the iShares Bitcoin ETF (IBIT) by BlackRock, which surpassed the Grayscale Bitcoin Trust in terms of AuM. Meanwhile, Ethereum’s stellar performance in inflows underscored its growing appeal among investors, further solidifying its position as a formidable player in the crypto market.

Altcoins Rise Modestly as XRP Gains Momentum

While Bitcoin and Ethereum took center stage, altcoins also saw relatively modest activity. Fantom (FTM) and XRP stood out, with Fantom recording inflows of $1.4 million and XRP closely following with $1.2 million. The surge in XRP inflows was catalyzed by speculations of a potential XRP ETF in the US, further fueling investor interest in the digital asset.

Also Read: XRP or DOGE: Deciding the Best Altcoin Investment for 2024

Key Inflation Data to Impact Market Sentiment

Crypto enthusiasts are closely monitoring key inflation data this week, particularly the US Consumer Price Index (CPI) for May, scheduled for release on Wednesday, June 12. Alongside the CPI, the US Producer Price Index (PPI) for May is also anticipated to provide crucial insights into inflation trends in the country, with the report set to be released on Thursday, June 13.

The release of these inflation metrics will play a pivotal role in shaping market sentiment and influencing the Federal Reserve’s future interest rate decisions. Following last week’s mixed US job data, investors are eagerly awaiting the CPI and PPI reports to gauge the economic landscape and its potential impact on cryptocurrencies.

Despite the recent rate cut by the EU Central Bank, optimism regarding a potential Fed rate cut remains uncertain, with the upcoming press conference expected to shed light on the Fed’s stance on inflation control and monetary policy adjustments.

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