Large investors are returning to BTC
Large investors have started investing in BTC again after a bad month in the crypto space, writes Reuters.
According to data from asset manager CoinShares, digital asset investment products saw inflows of more than $117 million last week, the biggest weekly gain since last July.
Bitcoin was the leader among all cryptocurrencies, and the funds tracking it received $116 million of this amount. Total crypto fund assets under management rose to $28 billion, up 43% from the November lows when the FTX exchange crashed.
Bitcoin is up nearly 40% in January, approaching its best monthly performance since October 2021 and its second-best January performance in over 10 years.
The crypto rally, along with a potential improvement in the macroeconomic picture, is leading investors to hope that the long “crypto winter” may finally be over. The US Federal Reserve is expected to raise rates by 0.25% this week, the smallest increase since the start of the tightening cycle last year.
The current activity in the options market indicates that traders are rushing to bet immediately after the Fed meeting, which indicates how important the market is attaching to it.
Trading volumes for other cryptocurrencies are on the rise, with average weekly volumes up 11%, indicating that traders are returning to the market after several months of lull.