In the fast-paced world of digital assets, the last two weeks have witnessed a significant shift. From an outflow of nearly $500 million, the market has seen an inflow of $708 million, marking a noteworthy turnaround.

This growth surge in the digital asset market is primarily attributed to investments in Bitcoin (BTC), which currently sits at a trading price of $42,808.

Digital asset market soars with $708 million

During the last week of January inflows into the digital asset market totaled an impressive $708 million, with a staggering $703 million of that amount entering the United States. This surge is in stark contrast to the previous week when there was a total outflow of $ 499.7 million.

Notably, Bitcoin accounted for a substantial 99% of all market inflows, amounting to a significant $703 million, while experiencing a minimal outflow of $5.3 million.

Global exchange-traded Products

In a broader perspective, global inflows into all exchange-traded products registered at $8.2 billion, although it was slightly down from the previous week’s figure of $10.6 billion. The United States was at the forefront of this surge, attracting $721 million, which stood in favorable contrast to the prior week’s $408.8 million outflow from the U.S.

The introduction of the U.S. market for BTC spot exchange-traded funds (ETFs) has been met with enthusiasm, drawing in a total of $1.7 billion. While this figure represents a slight dip from the weekly average of $1.9 billion since the market’s overall trajectory remains on an upward trajectory. It is important to note that this influx into U.S. BTC ETFs has been partly offset by outflows from existing issuers, which totaled $6 billion. Nevertheless, data suggests a significant reduction in the momentum of these outflows.

During this period, the Grayscale Bitcoin Trust (GBTC) ETF underwent a selloff, resulting in the divestment of $926.7 million worth of BTC. Additionally, ProShares sold $108.9 million worth of BTC. However, these outflows were counterbalanced by the performance of iShares, affiliated with BlackRock, and Fidelity ETFs, which collectively added an impressive $1.6 billion to their portfolios.

BTC price under pressure

The price of Bitcoin faced a downward trajectory last week amid indications that the U.S. Federal Reserve may maintain high interest rates in the foreseeable future. According to data, the Solana blockchain outshone its competitors by attracting $13 million in investments, in contrast to Ethereum’s $6.4 million and Avalanche’s $1.3 million. Ethereum, on the other hand, experienced an outflow of $6.4 million.

International flows

Looking beyond the United States, Canada saw the most significant outflow nationally, with a total of $31.3 million being traded away. Sweden followed closely with $8.2 million in outflows. It is worth noting that both Canada and Sweden witnessed outflows in the previous week as well, alongside several other countries.

However, Canada experienced a notable surge in outflows, which was reversed in Germany, Switzerland, and the United States. Switzerland, in particular, witnessed a remarkable turnaround, with outflows of $59.8 million two weeks ago, transforming into an influx of $20.9 million in the past week.

Read the article at CryptoPolitan