Bitcoin’s Dramatic Surge: Is Gold Quaking in Its Boots? 🚀💰

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Well, well, well! If it isn’t the digital asset investment vehicles waltzing their way into our hearts and wallets, drawing in a staggering $3.7 billion last week – and you thought your Aunt Mabel’s side-eye was impressive. This little adventure marked the second-highest weekly inflow ever recorded, with July 10th ringing in with the third-largest single-day inflow. Over the course of 13 consecutive weeks of inflows, we find ourselves basking in a cumulative total of $21.8 billion. Yes, that’s right, folks, we’re just shy of the modest sum of $22.7 billion for the year! 🎉

But that’s not all! Our dear assets under management have gone past the $200 billion milestone like an over-caffeinated rabbit, reaching a record-breaking $211 billion. ETP trading volumes have had a similar fit of excitement, soaring to $29 billion and doubling the year’s typical performance. Perhaps someone spiked the punch? 🍹

Investors Dive Headfirst into Bitcoin and Ethereum

In the latest edition of what I can only assume is a much-coveted ‘Digital Asset Fund Flows Weekly Report,’ our friends at CoinShares have revealed that Bitcoin investment products swaggered about with $2.7 billion in inflows last week – pushing total assets under management (AuM) to a rather impressive $179.5 billion. Interestingly, dear Bitcoin has now taken the gold ETPs by storm, representing a glitzy 54% of their total AuM. Bet those gold bars are feeling a tad insecure! 🏆

As for Ethereum, it’s strutting its stuff as well, notching its twelfth consecutive week of inflows with $990 million in its coffers, its fourth-largest haul on record. In relative terms, Ethereum’s inflows during this grand spectacle equal a whopping 19.5% of its AuM, outshining Bitcoin’s feeble 9.8%. Solana decided to join the party with an impressive $92.6 million, while Sui, being almost the last kid picked, managed to snag $3.5 million.

But wait! There’s more! During this grand fiesta, multi-asset investment products saw a timid $1.1 million in new capital, and our dear friend Cardano could only muster $0.5 million. Meanwhile, XRP opted for a rather unfashionable exit, leading the outflows with $104 million, while Chainlink couldn’t avoid the trend with a gentle $0.5 million tumble. Seems like not all assets are getting the spotlight, eh?

On the geographical front, the United States is strutting ahead like it owns the place with $3.7 billion in inflows. Following that, we have Switzerland and Canada whispering sweet nothings of $65.8 million and $17.1 million respectively, while Australia’s contribution was more of a polite clap at $1 million. Germany, bless its heart, recorded the week’s largest outflows with a staggering $85.7 million. And if that wasn’t enough drama, Sweden and Brazil chimed in with their own sad tunes, experiencing outflows of $15.7 million and $7.5 million, respectively.

But amidst this asset rigmarole, Bitcoin seems to be having an absolute breakout, like a pop star at their concert. 🎤

No Signs of Fatigue?

According to the ever-astute QCP Capital, Bitcoin’s rally above $122,000 shows no signs of fatigue whatsoever! Their update suggests that the market has, perhaps unwittingly, underestimated this parabolic breakout’s strength. It appears that a decisive technical move and rising institutional demand are acting as the wind beneath Bitcoin’s wings. And just when you think it can’t get any better, the Crypto Fear & Greed Index decided to take a leap from 40 to 70 in three weeks. That lovely transition indicates a rather delightful shift from apprehension to sheer investor glee! 🥳

Spot Bitcoin ETFs saw over $2 billion in net inflows last week, embodying growing institutional participation in this festivity. And lo! Perpetual funding rates approach 30%, as leveraged long positions fluff up while total open interest has crossed $43 billion, a level not seen since January. Not to fret; while volatility is usually the life of the party, this time it’s managed to keep its antics quite subdued. Front-end implied vols are modestly up, remaining below last year’s average levels. One-month risk reversals are as flat as a pancake on the floor – which is a nice metaphor for the apparent lack of udder demand for immediate upside.

However, there’s a silver lining! September and December risk reversals have been throwing quite the soiree, showing strong bids for calls. Investors, it seems, are hedging for long-term upside while cautiously tiptoeing around the immediacy of the moment. Elevated funding rates call for a watchful eye amidst this euphoric market, but rest assured, QCP remains structurally bullish on Bitcoin, citing macro and institutional support. Their approach? Wait for a pullback rather than diving headfirst into this frenzied rally.

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2025-07-15 07:19