Ethereum has recently made a real breakthrough, ending the week with a historic result in inflows of funds. Against the background of the successful upgrade of the Pectra network and the change of management, investors began to actively invest in cryptocurrency, which led to an increase in the inflow of funds. So, according to the European alternative asset manager CoinShares, $ 205 million was invested in Ethereum, which is several times more than the previous figures, when the amount of inflows barely exceeded $ 1.5 million.
Why is this so important? As CoinShares' James Butterfield explained, the EthereumPectra upgrade, which brought significant network improvements, as well as the appointment of a new co-executive director, played an important role in restoring investor confidence. Since the beginning of the year, the total amount of inflows into Ethereum has amounted to $575 million, indicating renewed optimism among market participants.
Not only Ethereum, but the entire cryptocurrency market has shown record results. Over the past week, $785 million has entered the market, which is significantly more than in previous months. This indicates a steady recovery of the market after the recession that was observed from February to March.
However, it is worth noting that although the total amount of inflows into the cryptocurrency market has increased, compared to last week, when the inflow amounted to $ 882 million, it has decreased slightly. Despite this, the United States has significantly outperformed other countries such as Hong Kong and Germany in terms of investment in cryptocurrency. The United States became the leaders with an influx of $557 million into bitcoin, while Hong Kong and Germany attracted only $24.2 million and $86.2 million, respectively.
As for bitcoin, its inflow decreased slightly against the background of the "hawkish" statements of the US Federal Reserve System, which may have cooled the ardor of investors a little. However, despite this, there is still a positive trend in the market, with inflows into short bitcoin products at $5.8 million for the fourth week in a row.
If you look at the dynamics of the market as a whole, you can see that there has been a positive inflow of funds for the last five weeks in a row, which gives hope for a steady recovery in the cryptocurrency market. But the question arises: how long will this trend last and how will it affect the prices of both bitcoin and altcoins? Time will tell, but the optimism in the industry is definitely noticeable.
What factors, in your opinion, can influence the further movement of this trend?
