$346 Million Flows Into Digital Assets, Most Since 2021: End of Crypto Winter Is Here
The end of crypto winter is here as several pieces of evidence imply that the extended “crypto winter” has ended, as the digital asset market gathers steam and appears to be on the verge of a bull run in the next few months.
A recent CoinShares survey shows $346 million in inflows into digital asset investment products this week, the highest jump since the end of the crypto bull market in late 2021.
Newfound profitability for multiple cryptocurrencies and the approaching Bitcoin halving event are all driving crypto into a possible bull market ahead. However, the notion of a spot Bitcoin exchange-traded fund (ETF) from possible issuers such as BlackRock, Fidelity, and ARK Invest appears to generate the greatest interest.
According to CoinShares’ report, Germany and Canada provided 87% of total inflows, indicating the possibility for more significant investment in the United States if and when a spot ETF product is approved.
Parys also mentioned two further indicators that crypto winter is ending, beginning with the momentum around digital asset values.
Parys noted that Bitcoin encountered resistance in April 2020 and during the summer months of June and July around $30,000.However, it has recently broken past the crucial level of resistance around $30,000 and has surged as high as $38,000 the previous week. And, in the previous month, numerous cryptocurrencies have returned to profitability, with Solana, Kaspa, and Tao among the top gainers.
Finally, Parys discussed the implications of the imminent Bitcoin reward halving event on the crypto market.
He stated that this would be the lowest rate of Bitcoin generation, and many are thinking that following the halving, there may be a supply shock since there will be less Bitcoin accessible on the market.
A lengthy bad market for this new asset class may end as several major factors coalesce to boost investor interest and propel cash into digital asset products. If history is any guide, crypto is about to go on a bull run that will propel numerous assets to all-time highs in price. Investors should plan appropriately.
The rise of institutional interest in cryptocurrency has been accompanied by the aforementioned spot Bitcoin ETF applications. This euphoria has prompted others to anticipate that the crypto market would reach a worth of $25 trillion by the end of crypto winter.
However, as Wall Street dives in, US authorities appear to be cracking down. An unprecedented penalty for Binance, the world’s largest crypto exchange, may have opened the way for a more compliant and controlled crypto bull run this time.
