Bitcoin crushes weekly inflow record, gaining $3.55 billion

Ethereum and Solana dominated investor interest, while altcoins such as SUI and Chainlink also occupied a small amount of inflows.

Last week, Bitcoin attracted a record $3.55 billion inflow, and investors avoided short-lived products even as its price approaches historic heights. In the broader digital asset market, investment inflows totaled $5.95 billion, the largest weekly inflow ever.

Coinshares believes that the surge indicates a delay in response to a reduced FOMC, coupled with disappointing employment data in the ADP salary report and uncertainty surrounding the stability of the U.S. government due to the closure. The resulting price rallies will increase the total assets under digital asset management (AUM) to $254 billion.

Investment influx

According to the latest version of the Digital Asset Fund Weekly Report, bullish trends are widely circulated as Ethereum recorded $1.48 billion inflows last week, bringing its year-end total to a record $13.7 billion, almost tripled last year’s figure. Solana also set a new weekly record with inflows of $706.5 million, pushing its YTD total to $2.58 billion. XRP attracted $219.4 million, while most other Altcoins had the least investor activity.

Investment products specifically targeting SUI, Chainlink and Litecoin welcome inflows of $3.4 million, $1.5 million and $1.2 million. Meanwhile, Cardano also saw a $500,000 inflow of modesty during the same period. On the other hand, the multi-investment product is the only cohort that reverses this trend, as its weekly outflow is $23.5 million.

Last week’s inflows showed widespread regional optimism, with the U.S. leading the sentiment as there was $5 billion inflow last week, a new weekly record. Switzerland also set a weekly high, investing $563 million inflows, while Germany welcomed its second largest weekly inflow of $312 million.

Next is Canada, Australia and Hong Kong, with inflows of $32.1 million, $6.3 million and $5 million, respectively. Brazil also settled with an inflow of $4.8 million. By comparison, Sweden acted as an outlier of $8.6 million outflow.

Seasonal and market narrative of October

Looking ahead, QCP Capital predicts that Bitcoin’s outlook is strong but cautious as the market approaches a potential October breakthrough. According to its latest notes, the main whales appear to have completed their asset spin, either staying stable and waiting for momentum to develop.

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Leveraged traders continue to chase the rally as BTC-Perp’s major exchange funding rate remains rising, with deribit’s 35% and super liquidity of 29%, pointing to a positive positioning. But such a high permanent poses the risk of a sharp liquidation, as seen two weeks ago, the long position of nearly $3 billion was eliminated, creating opportunities for institutional entry.

In the options market, traders’ short strikes on October-October calls increased to 126k-128k with live rally. Although some may think there is no clear catalyst for the recent surge in BTC, the supportive narrative remains strong. First, Bitcoin’s security appeal is re-establishing itself amid U.S. government shutdowns and outperforming gold, while October’s bullish season adds fuel.

On top of that, the centralized exchange balance has fallen to a six-year low, another bullish indicator.