The world’s leading cryptocurrency by market capitalisation, Bitcoin [BTC], remains the foremost preferred digital currency for investors, consistent with a recent official report.
Bitcoin inflows accounted for 97% of total cryptocurrency inflows thus far in 2021, consistent with an earlier 25th Jan. report by virtual asset investing firm CoinShares.
Bitcoin comprises 83% of the complete virtual asset investment products under management, while BTC investment products represent just 6.5% of total Bitcoin trading turnover. Amid a serious cryptocurrency Bull Run followed earlier in January, daily BTC trading volumes have massively surged thus far this year, increasing from a mean of $2.2 Bln in 2020 to $12.3 Bln this year so far.
Cryptocurrency investment product inflows hit a record of $1.3 Bln over the past week following a period of minor outflows, CoinShares added. “We believe investors are very price conscious this year due to the speed at which prices in Bitcoin achieved new highs,” the firm revealed.
While on the other hand, Ethereum [ETH] – the 2nd-largest cryptocurrency by market cap – saw inflows of $34 Mln over the past week, consistent with CoinShares’ data. There have been “little inflows since early December” as investors have been cautious, the report added.
Both Bitcoin [BTC] and Ethereum [ETH] hit their new all-time highs in 2021. Bitcoin broke its historical high of $42k earlier on 8th Jan., followed by Ether’s ATH of $1,430 USD earlier on 19th Jan. Both crypto assets were subject to a serious price correction, with Bitcoin plunging below $30k and Ethereum dropping to around $1k on 21st Jan.
In line with CoinShares, the recent price dip was partly prompted by recent comments from Secretary of the U.S. Treasury Janet Yellen. Earlier on 19th Jan., Yellen expressed concerns over cryptocurrencies, claiming that crypto is usually used for illicit financing. However, she added that cryptocurrencies has some potential to enhance the existing economic system.