Bitcoin (BTC), the world’s largest digital currency by market value, remains the preferred digital currency for investors, according to a new report.
Bitcoin inflows accounted for 97% of total cryptocurrency inflows in 2021, according to a January 25 report by digital capital investment firm CoinShares.
Bitcoin accounts for 83% of managed digital investment products, while BTC investment products only account for 6.5% of the total bitcoin trading ratio. Amid a sharp jump in cryptocurrency in January, daily BTC trading volumes have skyrocketed this year, increasing from an average of $ 2.2 billion in 2020 to $ 12.3 billion this year.
CoinShares indicated that investment in crypto investment products reached $ 1.3 billion last week after a period of less churn. The company added, “We believe that investors have been well aware of prices this year because of the speed at which bitcoin prices have reached new heights.”
According to CoinShares, Ether (ETH) – the second largest cryptocurrency by market cap – has received an inflow of $ 34 million over the past week. The report noted that “the inflow of shares has been small since the beginning of December” as investors were cautious.
Bitcoin and Ether both hit new all-time highs in 2021. Bitcoin hit an all-time high of $ 42,000 on January 8, followed by ATH of Ether at $ 1,430 on January 19. Below $ 30,000 and Ether fell to about $ 1,000 on January 21st. …
According to CoinShares, the recent drop in prices was partly the result of recent comments from US Treasury Secretary Janet Yellen. On Jan.19, Yellen raised concerns about cryptocurrencies and stated that cryptocurrencies are often used for illegal funding. However, she pointed out that the cryptocurrency has some potential to improve the economic system.