In a staggering display of investor interest, the Bitcoin network has witnessed an unprecedented surge in daily inflows, with over $3 billion entering the network daily for the past 30 days, according to a recent tweet by prominent cryptocurrency analyst Willy Woo.
The last 30 days has seen more than 3 BILLION DOLLARS per day entering the #Bitcoin network. pic.twitter.com/2ZqovhA9WL
— Willy Woo (@woonomic) December 16, 2024
The crypto market also witnessed a tenth consecutive week of inflows into investment products, with a substantial $3.2 billion of new investments recorded during December 9-13, as revealed in CoinShares’ latest report.
A combination of influential factors has contributed to the remarkable inflows into the crypto market. The heightened market volatility and liquidity have created an attractive environment for traders.
Over the past 30 days, Bitcoin’s price has experienced a notable surge, successfully breaking through critical resistance levels and achieving new all-time highs (ATH). This development has predictably sparked a flurry of trading activity as market participants seek to leverage the price movements and market adjustments to their advantage, resulting in the massive capital inflow into the Bitcoin network.
The increasing involvement of institutional investors in the Bitcoin market is also a primary catalyst for the remarkable inflows. As numerous prominent investors and hedge funds jump on the bandwagon, the Bitcoin network is witnessing a significant surge in investment, further solidifying its position as a leading asset class.
Institutions are Doubling Down on Bitcoin
Fidelity Investments, a prominent global asset management firm, took advantage of the market downturn last week, adding a substantial $196 million in Bitcoin to its portfolio, which now stands at 199,237 BTC, with a valuation exceeding $19.3 billion at the time of the report.
In a similar move, another asset management giant, BlackRock, which has over $11.5 trillion in assets under management (AUM), recently invested significantly in Bitcoin, acquiring 4295 BTC worth $429.5 million.
Meanwhile, Bitcoin mining firms are also actively expanding their holdings. Notably, North American Bitcoin mining firm Riot Blockchain added significantly to its Bitcoin reserves, acquiring 5,117 BTC on Friday.
The firm’s latest purchase increased its total Bitcoin holdings to 16,728 BTC, which has a total value exceeding $1.67 billion.
No End in Sight
The trend of institutional influx into Bitcoin is showing no signs of slowing. It is likely to gain momentum as governments continue introducing regulatory reforms that foster a more favorable environment for the industry.
For instance, in September, the Qatar Financial Centre Authority (QFCA) and Qatar Financial Centre Regulatory Authority (QFCRA) unveiled the QFC Digital Assets Framework, a comprehensive set of regulations to facilitate institutional investors’ adoption of cryptocurrencies.
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