Bitcoin recovered above $50K on Tuesday after a rally that put the market back in the green. October has been a good month so far for the digital asset and investors are starting to get back into the market amid the price recovery. On the investment front, inflows show institutional interest in bitcoin is returning after inflows were below expectations in previous weeks.
Bitcoin makes up 76.6% of weekly flows
A report published by CoinShares showed that Bitcoin inflows are back on the rise. Altcoins were capturing more market share as their popularity grew due to the rise of decentralized finance (DeFi) networks such as Ethereum and Solana. These assets dominated market inflows as investors flocked to profit from their growth. Altcoins saw the largest share of market inflows over the course of September. But the end of the month showed a decisive shift in sentiment for institutional investors.
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The report showed institutional inflows of $90 million for the previous week, while Bitcoin alone saw inflows of $69 million. This represents 76.6% of all inflows, which indicates that institutional investors are not turning their attention back to Bitcoin. High-value assets have a long-term track record of success and their recent price shift is proof of that.
Investor confidence in Bitcoin is improving. The fear and greed indicator shifted to greed, which showed increased buying pressure in the market. Bitcoin and its related products are seeing increased investor interest, and most importantly, big money is coming back to the original.
BTC breaks $52K resistance point | Source: BTCUSD on TradingView.com
Market inflows rise on the basis of Altcoins surrender
Market inflows have risen in recent weeks. This represents the seventh consecutive week of inflows and a total of $411 million entered the market. Altcoins have given up some of the market shares they’ve hijacked from the top cryptocurrencies. Total Ethereum inflows for the week totaled $20 million, down 3% from its peak to just 25% of total inflows.
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Solana, who dominated inflows for a while in September, recorded a significant drop in inflows. The assets recorded only minor inflows of $0.7 million. Besides other digital currencies that suffered the same fate. Cardano, the third largest cryptocurrency by market cap, has only seen inflows totaling $1.1 million. While Polkadot, Tezos, and Binance all recorded inflows totaling $0.8 million.
However, volumes remained low despite the inflows. At the height of the bull market in May, volumes reached $8.4 billion. Now, volumes are as low as $2.4 billion, which is a 70% drop from their peak in May.
Featured image from Coinnounce, chart from TradingView.com
