Key Takeaways:
Crypto investment products saw $3.3 billion in weekly inflows, pushing 2024’s total to a record $10.8 billion. Investor concerns over the U.S. economy and rising treasury yields are driving diversification into digital assets. Bitcoin led with $2.9 billion in inflows, while XRP recorded its largest-ever weekly outflows at $37.2 million.Institutional appetite for crypto investment products surged last week, with digital asset funds raking in $3.3 billion in inflows, according to data from CoinShares.
The wave of capital pushed year-to-date inflows to a record-breaking $10.8 billion, signaling renewed confidence in the sector.
CoinShares’ head of research James Butterfill noted that total assets under management in crypto exchange-traded products (ETPs) briefly touched an all-time high of $187.5 billion.
Moody’s Downgrade Spurs Digital Asset Inflows
The uptick comes amid mounting concerns over the U.S. economy following a Moody’s downgrade and rising treasury yields, which have prompted investors to seek diversification.
“We believe that growing concerns over the US economy, driven by the Moody’s downgrade and the resulting spike in treasury yields, have prompted investors to seek diversification through digital assets.”
Nevertheless, the United States led the inflows with $3.2 billion, while Germany, Hong Kong, and Australia contributed $41.5 million, $33.3 million, and $10.9 million, respectively.
In contrast, Switzerland recorded $16.6 million in outflows, as investors cashed in on recent price gains.
Bitcoin remained the top draw, attracting $2.9 billion, nearly 25% of all inflows for 2024.
Short-Bitcoin products also saw increased activity, pulling in $12.7 million — the highest since December — suggesting some traders are betting against recent price rallies.
Ethereum continued its positive momentum with $326 million in inflows, marking its fifth consecutive week of gains and the strongest week in nearly four months.
XRP, however, saw its 80-week inflow streak break, posting a record $37.2 million in outflows.
Bitcoin Surges After Trump Delays EU Tariffs
Bitcoin briefly surged past $111,000 before retreating to $109,600 late Sunday, as markets responded to US President Donald Trump’s decision to delay a proposed 50% tariff on European Union goods.
The announcement followed a phone call with EU Commission President Ursula von der Leyen, granting more time for trade negotiations and easing global market tensions.
U.S. stock futures climbed modestly, signaling cautious optimism. However, volatility remains high, with a new July 9 deadline keeping investors on edge.
The earlier threat of steep tariffs caused Bitcoin to dip nearly 2%, illustrating the crypto market’s growing sensitivity to macroeconomic and geopolitical developments.
Meanwhile, analysts suggest that institutional inflows, supportive regulation, and broader monetary trends continue to create a structurally strong foundation for the crypto market, even as political developments stir short-term volatility.
As reported, Shunyet Jan, Head of Derivatives at Bybit, has projected that Bitcoin could reach $125,000 by the end of Q2 if current trends persist.
Last week, crypto analyst Scott Melker said he believes Bitcoin could surge to $250,000 by the end of 2025, driven by institutional demand and a maturing market structure.
Likewise, Adam Back, a prominent figure in the Bitcoin community and CEO of Blockstream, believes that Bitcoin is significantly undervalued and could surge to between $500,000 and $1 million per coin during the current market cycle.
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