Driven by Bitcoin and Ethereum, cryptocurrencies are on the rise in Europe. According to a recent report from Bloomberg, the old continent injected more than $43 million into crypto funds last week. A craze that contrasts with American and Asian skepticism.
Bitcoin still dominates the majority of entries
For the 11th consecutive week, crypto funds recorded net capital inflows, although the pace slowed after several peaks. A sign that some investors are showing more caution in the face of price volatility.
Unsurprisingly, Bitcoin captures the majority of new capital with $20 million in net inflows over the past week. Since January, the queen of cryptos has drained 1.7 billion dollars, proof of lasting interest despite a price still far from its historical record.
Nevertheless, $8.6 million also flowed into short Bitcoin funds, with some investors betting on a bearish reversal after the spectacular surge in recent months.
For its part, Ethereum can boast of $10 million in net inflows over the last 7 days. The second crypto in terms of capitalization thus marks a 6th consecutive week of positive inflows, after having suffered 125 million withdrawals at the start of 2023.
In the end, the annual balance returned to surplus at 19 million, proof of a clear revival of investor interest in the Ethereum ecosystem.
Europe dominates, Asia lags behind
According to Bloomberg, Europe stood out last week with 43 million injected into crypto funds, as this market continues its rebound.
In terms of geographical areas, Europe clearly dominates while the United States peaks at 14 million. Above all, half correspond to short positions, a sign that many American investors doubt the continuation of the rebound. For their part, Hong Kong and Brazil even suffered net outflows of 8 and 4.6 million.
In short, the crypto market remains attractive to investors overall. Bitcoin and Ethereum monopolize the main inflows, although speculative appetite is also driving growing interest in short strategies.
At this stage, Europe is the most dynamic region. It remains to be seen whether this momentum will continue, while Asia seems more circumspect. Caution could gain ground if the rebound in prices runs out of steam. »
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