Big Investors Rekindle Love for Crypto as Bitcoin Surges

$117 Million Inflows in Digital Assets Last Week, Largest Since July

- Advertisement -

Big investors are investing in crypto again as Bitcoin (BTC) was on an upward trajectory in January.

Investments in digital assets, which are often favored by institutional investors, had inflows of $117 million-plus last week. It was the largest weekly increase since July, according to data from asset management firm CoinShares.

The largest inflows by far were in bitcoin, with $116 million invested in funds tracking the largest cryptocurrency.

Assets under management in crypto $28 billion

Total crypto assets under management rose to $28 billion, up 43% from the lows of November when the FTX exchange collapsed, sending shockwaves through the industry.

“For the most part, people are more confident than they were a month ago,” said investment adviser Enigma Securities.

Bitcoin rises 40% in January

Bitcoin rose nearly 40% in January, but from very low levels it had plummeted to over $22,000 in late 2022.

This rally, coupled with a possible improvement in the macroeconomic picture, has some investors hoping that the long crypto winter may reach its limits in the spring.

Many investors expect the Fed to raise its key interest rate by 25 basis points this week, the lowest rate since last March when it began tightening policy.

Activity in the options market shows that traders are rushing to bet after tomorrow’s Fed meeting.

Crypto trading volumes are also increasing, according to CoinShares, with average weekly volumes up 11%.

However, the crisis is not over for crypto and the Fed could spoil the party if it is tighter in its phraseology tomorrow.

Read Also

- Advertisement -
- Advertisement -
- Advertisement -

Latest

- Advertisement -

Must Read

Read Next
Recommended to you