The crypto market just pulled in $321 million in investment inflows, marking its second straight week of positive fund movement, all thanks to the change in U.S. monetary policy.
After the Federal Open Market Committee (FOMC) went last week, investors rushed in.
The 50 basis point rate cut triggered a 9% increase in total assets under management (AuM).
Now the total value of investment products has hit $9.5 billion, a 9% bump from the week before.
Investors are throwing money into Bitcoin like there’s no tomorrow. It pulled in $284 million on its own, making it the top choice by far.
Short-Bitcoin products also saw $5.1 million in inflows.
Ethereum, on the other hand, keeps losing steam. It’s the fifth straight week of outflows, shedding $29 million as investors look elsewhere.
Across regions, America leads the way, pulling in $277 million. Switzerland had a strong showing too, with $63 million—its second-best week of the year.
Not every country is on the same page though. Germany saw $9.5 million leave its markets, Sweden lost $7.8 million, and Canada fell short with $2.3 million in outflows.
The Grayscale Trust continues to suffer from withdrawals, and new ETFs haven’t been doing much to attract new capital.
Meanwhile, Solana is seeing small but steady gains. It pulled in $3.2 million last week.
At a recent fundraiser, Kamala Harris flipped the script, vowing to support the growth of the crypto sector. This has also given the market some much-needed additional confidence.
Almost $60 million in short liquidations happened after her pro-crypto statements hit the news. If she wins the election, it might not be as bearish for the market as some think.
Anthony Scaramucci and other high-profile crypto supporters are already working closely with her campaign.
Last week, Bitcoin bounced back by almost 12%, recovering from its lows of $57.5K. And if analysts are right, it could rally by another 13.8% to $72K.
The usual frontend put skew in options market is starting to even out.
There are more buyers willing to bet on Bitcoin’s price rising and sellers taking the other side, making it a more balanced market sentiment.
Funding rates are also looking better on major exchanges, and basis yields are becoming more attractive.
The 7-day Simple Moving Average (SMA) of the Fund Flow Ratio, which tracks how much money is flowing in and out of exchanges, hit 0.05 last week.
Historically, this level acts as a floor, the end of bear markets or halving events. What happens next?
Typically, the market starts moving into bull territory when this metric rebounds, leading to long-term gains in prices.
The 30-day SMA of the Estimated Leverage Ratio has formed a key support range between 0.15 and 0.175 and is now starting to recover.
With futures ETFs gaining traction since 2021 and new developments in Bitcoin options trading, this metric is becoming more important.
Investors are taking on more leverage, and that’s usually a sign that they’re confident about where the market is headed.
One more metric to watch is the 30-day Exponential Moving Average (EMA) of Binary CDD. Right now, it’s sitting between 0.1 and 0.3, which means long-term holders are starting to buy Bitcoin again.
When this metric spikes, it often signals the end of bull markets. But for now, it looks like Bitcoin is in the accumulation phase, which is a positive sign for long-term price growth.
With so many on-chain indicators flashing bullish signals, the market seems ready for a breakout.
