Crypto Tsunami: Bitcoin Dominates with 83% of $2.7B Inflow as Miners Struggle

Wall Street's favorite digital gold just flexed its muscles again. While altcoins flounder, Bitcoin is vacuuming up capital like a black hole—proving once more that in crypto winter, the OG cryptocurrency wears the thickest fur coat.

The Big Suck

New money isn't spreading the love. A staggering 83 cents of every dollar entering crypto last week went straight to Bitcoin, leaving scraps for the 'innovative' altcoin projects that promised to 'do it better.' Meanwhile, mining operations sweat through their ASICs as hash prices stagnate—but hey, at least the Lambo dealerships are still taking orders.

The Institutional Stampede

Whales aren't nibbling—they're swallowing whole. The $2.7B surge marks the third consecutive week of institutional inflows, with TradFi dinosaurs finally understanding what 'number go up' means. Pension funds might still be allergic, but family offices are stuffing Bitcoin like Thanksgiving turkeys.

So much for decentralization—when the chips are down, crypto's 'revolution' still kneels before its orange-and-white king. Maybe Satoshi was right about replacing bankers... with bigger bankers.

• Digital asset products attract $2.7B in weekly inflows, with Bitcoin taking 83% share.
• Ethereum sees continued strength with $429M in weekly inflows.
• Bitcoin miners endure low profitability but hold back from selling.

Digital asset investment products are gaining new momentum, taking in $2.7 billion in the last week alone, CoinShares highlighted in its latest weekly summary. It’s the 11th consecutive week of net positive flows, pushing the year-to-date sum to $16.9 billion.

Leading the charge is Bitcoin, which contributed $2.2 billion, 83%, of the combined capital flow. It is reflective of the first half of 2024’s bullish trend, in which the first six months of the year brought the gap to a close with $18.3 billion in inflows.

The drive is greatly centralized in the United States, which alone brought in $2.65 billion last week. Meanwhile, Switzerland and Germany brought in relatively modest amounts in the FORM of $23 million and $19.8 million, respectively.

Conversely, there were minor outflows from Canada, Hong Kong, and Brazil, which combined amounted to $18.3 million. Hong Kong witnessed continuous outflows in the month of June alone, totaling $132 million in recent market changes.

James Butterfill of CoinShares believes the trend of continued inflows is due to the expanding geopolitical risks and the mounting uncertainty in monetary policy. Both of these macroeconomic stimuli seem to be driving institutional and retail investors to seek out digital currencies as diversification and a long-term store of value.

Ethereum Maintains Momentum While Solana Lags

Ethereum also had a positive week, drawing in $429 million and pushing its year-to-date aggregate inflows to $2.9 billion. The figures are testaments to the faith of investors in the long-term scalability and ecosystem growth of the network.

In the meantime, the investor demand for Solana in the past has been less favorable, having seen only $91 million in inflows since the start of the year. Short-Bitcoin funds remained out of favor and reported net outflows of $2.9 million. 

The year-to-date net outflow for short-BTC funds is now $12 million, underscoring the overwhelming positive sentiment for the future of the markets. Ethereum’s continued net inflows reflect the investors’ unwavering bullish sentiment despite the continued skepticism of the markets’ overall condition.

Bitcoin Miner Revenues Plunge to Lowest Since 2012

Meanwhile, Bitcoin miners are having a rough time. In the latest Alphractal report, total fees in the Bitcoin network for transacting have reached multi-year lows last seen in 2012, drastically reducing miners’ revenues.

Despite all this, there is still no strong indication of miners increasing selling. Miner’s Sell Pressure remains low, which means they continue to hold onto their reserves rather than sell.

To further complicate the issue, mining difficulty has yet to change after the most recent fall in hash rate, continuing to compress the margins. 

Delays in network rebalancing along with record highs in hash rate volatility suggest some operations are scaling down the scope of operations or switching off rigs momentarily.

In spite of BTC trading in the range of $107,000, the absence of broad-based miner capitulation is a sign of the upcoming phase of strategic rather than distress consolidation. Provided the trend holds, the market is entering a more stable phase where miners restructure operations in line with the network usage prevailing.