Bitcoin Hits $109K While Ethereum Takes the Spotlight in Institutional Inflows
Bitcoin has surprised the market by crossing the $109,000 mark once again after briefly dipping to $107,500 over the weekend, according to the latest data from CoinGecko. While the leading cryptocurrency enjoyed its rally, Ethereum has been stealing the spotlight with institutional investors.
Ethereum’s Growing Institutional Interest
CoinShares’ latest report revealed that Ethereum accounted for a staggering 57% of the total institutional crypto inflows in August. With total market inflows of $2.48 billion during the week, Ethereum contributed $1.42 billion, outpacing Bitcoin’s $748 million by a significant margin. Over the entire month, Ethereum boasted $3.96 billion in inflows, while Bitcoin saw an outflow of $301 million.
The increased popularity of Ethereum can be attributed to its expanding usability and investment products such as ETFs and ETPs, which are appealing to institutions. This trend highlights the growing confidence in Ethereum’s potential despite the cryptocurrency’s 4.3% drop last week, a steeper fall compared to Bitcoin’s 2% decline.
Bitcoin Dominance Holds Steady but Faces Challenges
Bitcoin dominance—the ratio of Bitcoin’s market cap to the rest of the cryptocurrency market—remained steady at 58%. Though Bitcoin continues to maintain a strong position, altcoins like Filecoin, Polygon, and Mantle made notable gains over the week.
Investment predictors on platforms such as Myriad Markets suggest a near 50/50 chance that Bitcoin dominance could either climb to 63% or fall to 53%, reflecting uncertainty in market momentum.
Global Trends in Crypto Inflows
Institutional crypto investments saw significant activity on a global scale, with the U.S. leading last week’s inflows at $2.29 billion. Other notable contributions came from Switzerland ($109.4 million), Germany ($69.9 million), and Canada ($41.1 million). This global interest indicates a broad adoption of digital assets beyond the U.S.
Despite the positive inflow trends, the release of Core PCE data by the U.S. Federal Reserve dampened investor sentiment towards the end of the week. Profit-taking behavior played a role in outflows, bringing Friday’s crypto liquidations to over $500 million, with Bitcoin falling by 4% and Ethereum by 6%.
Stay Ahead with Secure Crypto Investments
As institutional interest in Ethereum and Bitcoin grows, it’s crucial for everyday investors to consider secure trading platforms and robust wallets. For those interested in NFTs or trading Ethereum, tools such as the Ledger Nano X wallet offer a reliable way to secure assets while exploring Web3 opportunities.
Whether you’re an institutional investor or a crypto enthusiast, the market’s recent trends highlight the importance of diversifying portfolios and keeping a close eye on macroeconomic factors that influence the market.
