Optimism sets in & points towards a Bull from a brutal Bear Crypto market
As per a report that has been carefully prepared by CoinShares, there happens to be a general feeling of optimism where the overall crypto market is concerned. This would be after a supposedly long wait-and-watch period in the case of all concerned investors. In order to better substantiate their observation and claim, they have duly mentioned the fact that there has been an inflow amounting to the figure of $76 million into funds in the previous week itself. This surely spells out the fact that the turn of events happens to be actually encouraging. Incidentally, this inflow has been taking place for the last four weeks. Some of the funds that have witnessed this inflow happen to be Grayscale, 3iQ, and also 21 Shares.
This very scenario happens to be so very different, as compared with the period towards the end of the year gone by when seemingly, investors happened to have been withdrawing money from exchange-traded products. It was also the same scene in the case of other crypto investment vehicles, and all of this took place following the total collapse of the exchange FTX that occurred sometime in the month of November 2022.
Reliable sources in Coinshare further state that their observations spell out the fact that there happens to be a marked difference in the investors’ thinking since the start of the year 2023. The proof of this lies in the fact that the total investment assets under management happen to have risen by 39% when compared to the same period the year before. The figure now has reached $30.3 billion, and this also happens to be the highest since the month of August 2022. There is also a mention that, in the case of investors, they happen to be leaning towards the largest digital asset, Bitcoin, which currently is definitely the most favored. The inflow in this happens to be US$69 million, which happens to be covering 90% of the total inflow in just a week’s time.
According to James Butterfill, who happens to be the Head of Research at CoinShares, the changing scenario may be attributed to the change in the overall viewing of the U.S. in terms of monetary policy, along with the issue of the weakening of the dollar. In the case of the U.S. Federal Reserve, it has been vigorously increasing the interest rates in the year gone by in order to get a hold on the 40-year high inflation rate.
Where the traders are concerned, all eyes happen to be on Jerome Powell, who happens to be the Chairman of the Federal Reserve, and he may be sharing about the bank’s future plans during his speech at the Economic Club of Washington D.C. As of the present moment in time, the U.S. equities happen to be down, along with Bitcoin and Crypto.
Also, as per Nischal Shetty, who happens to be the Founder of WazirXIndia, the U.S. Federal Reserve happened to have increased the interest rate by 25bps in the previous week. The period prior to this had set off speculations as to the crypto pricing, which, in his opinion, seems to be encouraging news for crypto finally.