Bitcoin Skyrockets Past $80K Amid $1.98B Crypto Inflows Boom

Within the past week, the digital asset market received a substantial inflow of $1.98 billion. It is the fifth week in a row that crypto inflows have occurred, bringing year to date investments to a record $31.3 billion, CoinShares said.

Global inflows have now reached an all-time high of $116 billion, which shows how much investor confidence. This comes as the price of Bitcoin (BTC) has recently hit $85k.

The past week saw trading volumes hit the most since April, due to high interest in the crypto space. Europe was very important too, and the bulk of investments were American, US, but Switzerland and Germany came in with $23 million and $20 million in inflows, respectively.

– Advertisement –

The enhanced investor interest and bountiful conditions across major economies are the reasons for the inflows, the market observers said.

Bitcoin saw an inflow of $1.8 billion into the asset as it was boosted by its favorable economic landscape and recent political changes in the US.

Bitcoin’s strong inflows have been caused by the U.S. Federal Reserve’s September interest rate cut, the first in this cycle. It’s a testament to growing confidence in Bitcoin as a leading digital asset.

– Advertisement –

Spot Bitcoin ETFs Drive Record Inflows in November

Since early November, spot Bitcoin ETFs have drawn huge attention for Bitcoin, both from institutional investors and ETH, which remains extremely popular on Uniswap.

Since then, major daily net inflows have been $1.38B on November 7, $893.21M on October 30, and $621.90M on November 6, and demand continued to be sustained. While there were a few outflows such as $541.07 million on November 4 Bitcoin’s upward trend is still strong.

Perfect positive market sentiment pushed it to its new all-time peak of $84,962.40 on Monday, when the surge in demand. Investor enthusiasm was also boosted by the ongoing U.S. election cycle, during which several pro-crypto candidates were elected up.

Moreover, there’s been an uptick in futures market activity, with Bitcoin’s open interest reaching over $90,000 on the Deribit exchange, worth some $2.8 billion.

There is an implied optimism in the options market where call options taking advantage of price increases are running up on price, as everyone is betting.

The head of research at K33 Research, Vetle Lunde, says increased open interest in out-of-the-money calls points to a bullish outlook. Strong bias for upward momentum shows up in heightened premiums of Bitcoin and Ether futures contracts, namely on the CME derivatives exchange.

Ethereum Gains $157M in Strong ETF Inflows

The second largest cryptocurrency, Ethereum, was also favorable and sucked in $157 million, the biggest since ETF started in July. It signals new money flowing into Ethereum to prove its future as a leading blockchain platform. Like Bitcoin, Ethereum’s inflows are seeing recent gains, matching a broader trend in the crypto market.

Other altcoins, like Solana, Uniswap, and Tron, also saw significant investments. New capital poured into blockchain equities, accumulating $61 million as interest in blockchain’s broader ecosystem grows. This diversification of investments shows that investors are looking at investments beyond Bitcoin to diversify the base of digital assets.

Meanwhile, the yields on offshore derivatives markets have been rising—a result of increased risk-taking among investors—in addition to the spot market.

Stable double-digit yields have driven leverage, rising as traders position themselves for potential gains. This is a calculated bet on keeping the crypto market on its current rally.

Investor sentiment remains bullish, as demonstrated by premiums for Bitcoin and Ether futures contracts, which averaged 14% and 14.5%, respectively.

These figures represent a substantial rise from pre-election levels, which averaged around 7%. The increasing premiums underscore the positive flows driving the market, with institutional investors showing particular interest.