Bitcoin funds saw their fourth consecutive week of inflows from investors.
According to a report from CoinShares, digital asset fund inflows totalled $114 million last week, most of which went into Bitcoin-related funds.
Bitcoin funds recorded $103.8 million worth of inflows, while Short Bitcoin funds saw $14.6 million worth of inflows. Ethereum recorded modest inflows of $300,000 despite successfully ushering in the era of withdrawals through the Shanghai upgrade last week.
“Bitcoin has again been almost the sole focus for investors, with inflows of US$104m last week, bringing its total 4-week run to US$310m. We believe this is a flight to safety by investors fearful of the ongoing traditional finance challenges,” wrote CoinShares’ James Butterfill.
On-chain indicators analysed by Glassnode also painted a positive picture for crypto market proponents. In a newsletter published on April 17, Glassnode found that organic Bitcoin transaction counts exceeded 270,000 per day, approaching cycle highs on a monthly average basis.
Bitcoin Inscriptions, which surpassed 1 million last week, likely tipped the scales in favor, the analysts noted.
Data also shows that older coins are not being spent since Bitcoin recovered from its 2022 lows. These long-term Bitcoin holders account for 80% of the wealth on the network and appear to have remained resilient in holding their funds through the tumultuous bear market.
“Whilst Bitcoin and digital assets experience a relatively high degree of market volatility, many on-chain indicators, which reflect collective human decisions, are surprisingly consistent,” they said.