After facing severe selling pressure from retail and institutional investors during the last 10 weeks, the price of Bitcoin saw one of its best days on 4 February. The digital asset climbed by almost 10% and has touched the price level of $42,000 for the first time in 15 days.
The most dominant cryptocurrency witnessed a sharp increase in its volume and address activity during the recent bullish rally. In total, BTC has added more than $70 billion to its market capitalization in the past 24 hours.
The number 2 digital asset by market value, Ethereum regained the price of $3,000 on Friday for the first time since 21 January. While ETH struggled more than Bitcoin during the market correction in January 2022 when the crypto asset saw a stronger recovery. In terms of weekly price gains, Ethereum is up by almost 20% in the last week.
“Bitcoin has leaped back to the $40k's on Friday in tandem with equities markets surging. With this upswing, traders' positive vs. negative commentary has blasted off to its highest ratio since late October, as BTC maximalists are chiming in,” Santiment noted.
Weekly Crypto Inflows
Bitcoin witnessed a surge in demand from institutional investors last week after BTC investment products attracted $22 million worth of inflows. According to the digital assets weekly fund flows report published by CoinShares, the total value of global BTC assets under management (AUM) stayed above $31 billion in the previous week.
“Digital asset investment products saw inflows for a second week totaling US$19m last week, while small, it continues to suggest investors are beginning to cautiously add to positions at these depressed price levels. We are seeing an increasing price sensitivity to monetary policy statements, with the recent FOMC meeting having an immediate intraday price response. Bitcoin saw inflows for a second week totaling US$22m,” CoinShares highlighted.
