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Bitcoin Reports $398m Inflows Amidst Massive Selloffs

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Data on CoinShares revealed that Bitcoin reported about $398m in inflows despite the recent market crash. This number accounted for 90% of the total inflows into the crypto market. CoinShares head of research James Butterfill stated that the price drop is “likely being seen as a buying opportunity,” considering the weekly inflow report.

Bitcoin ETF Accounted For 70% of the Inflow

Bitcoin’s $398m inflows covered other Bitcoin-related products, including the spot Bitcoin ETF. For instance, the US spot Bitcoin ETF recorded $238.4 million in net inflows, while Hong Kong, Switzerland, and Canada recorded $32 million, $24 million, and $12 million in net inflows, respectively, according to data on The Block’s dashboard.

Bitcoin usually dominates 99% of the total inflows in the market. However, the recent CoinShares data indicates that out of the $441 million total inflows recorded in the crypto space, Bitcoin dominated only 90%.

The decrease in Bitcoin dominance showed that investors are diversifying their portfolios and investing in a wider range of alternative cryptocurrencies (altcoins).

For example, the weekly report showed that Solana-based investment products recorded about $16 million in net inflows. Meanwhile, the second largest crypto, Ethereum, saw about $10.2 million and Multi-asset recorded $12.8 million.

Mt. Gox $2.71B Transfer Crashes the Market

Last week, Bitcoin suffered a massive market correction following a movement on the Mt. Gox wallet.  The now-bankrupt crypto exchange transferred 47,229 $BTC into another wallet. At the time of the incident, the total BTC transfer was worth around $2.71B.

Considering Mt. Gox ‘s current situation, the huge transfer, is most likely a step toward fulfilling its July repayment commitment. 

Another catalyst for the sell-off was the German government’s frequent Bitcoin transfers. A government-owned wallet sent 250 BTC to Bitstamp, 250 BTC to Coinbase, and 500 BTC to a mysterious address allegedly linked to a centralized exchange or OTC desk.

According to the market, the transfers could significantly threaten Bitcoin’s long-term viability and price stability. A member of the German parliament, Joana Cotar, even expressed dismay over the German government’s recent decision to divest a substantial amount of its assets.

Cotar also highlighted that the US views the cryptocurrency as a strategic asset, unlike Germany’s approach.