Cryptocurrency Prices Soar: Bitcoin Reaches $109k, With Ethereum Inflows Leading the Charge According to CoinShares

Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalisation, experienced a mixed week in the cryptocurrency market.

According to CoinGecko, Bitcoin reclaimed the $109,000 mark on Monday morning, following a 2% weekly drop. Ethereum, on the other hand, is currently trading at $4,406, having dropped 1.5% on Monday and 4.3% over the past week.

Last Friday, Bitcoin, Ethereum, and XRP all saw a dip, with Bitcoin dropping 4%, Ethereum 6%, and XRP 6%. This decline was more likely due to profit-taking rather than a concerning trend for the asset class, as reported by industry analysts.

Despite the weekly drop, predictors on Myriad Markets believe there is a 52% chance that Bitcoin dominance will hit 63%. Bitcoin dominance, which measures Bitcoin's share of the total cryptocurrency market, has traded sideways at around 58% over the past seven days.

Ethereum, however, has been the star performer in institutional inflows. For the month of August, Ethereum saw inflows of $3.96 billion, while Bitcoin had outflows of $301 million. In the week just ended, Ethereum accounted for $1.42 billion or 57.26% of all crypto inflows, with Bitcoin attracting just $748 million worth of inflows, almost half that of Ethereum's.

Switzerland, Germany, and Canada were the top three countries attracting crypto inflows last week, with inflows of $109.4 million, $69.9 million, and $41.1 million respectively.

The U.S. also saw significant inflows last week, attracting $2.29 billion. This influx could be attributed to the Trump administration's January 2025 Executive Order "Strengthening American Leadership in Digital Financial Technology," which recommends government acquisition of cryptocurrencies, potentially marking the biggest institutional entry in the near future.

However, the cryptocurrency market as a whole saw outflows late last week, with crypto liquidations topping $500 million on Friday. This outflow was likely due to the disappointing Core PCE data, which failed to support expectations of a Federal Reserve rate cut in September, as reported by digital asset investors.

The entire cryptocurrency market attracted weekly inflows of $2.48 billion, as reported by CoinShares. This figure includes inflows to altcoins like Filecoin, Polygon, and Mantle, which posted weekly gains.

CoinShares Head of Research James Butterfill noted that inflows were strong throughout the week but turned negative on Friday after the release of Core PCE data. Despite this recent dip, the overall sentiment in the cryptocurrency market remains positive, with predictors seeing a 60% likelihood of Bitcoin dominance dropping in the near future.

Cryptocurrency Prices Soar: Bitcoin Reaches $109k, With Ethereum Inflows Leading the Charge According to CoinShares