Bitcoin [BTC] Dominating Crypto Fund Inflow: Puell Multiple Signals Market Top?

• Last week, CoinShares reported that Bitcoin [BTC] dominated other assets in terms of crypto fund inflow.
• Inflows in the region were extremely bullish, with most of the liquidity going into Bitcoin short-investment products.
• CryptoQuant’s data and Cauconomy’s opinion suggested that the Puell Multiple may be exiting the red area, indicating a possible market top, mid-cycle or bearish condition.

The past week has seen an influx of digital asset investments in the cryptocurrency sector, with Bitcoin [BTC] leading the charge. According to data released by CoinShares, the largest digital investment group in Europe, the region saw an extremely bullish inflow of funds into Bitcoin short-investment products.

The inflow from last week was worth $37 million, with the majority of the liquidity being pumped into Bitcoin short-investment products. Switzerland and Germany drove the charge, with 80% of trading in the region focusing on Bitcoin shorts. This surge in interest could be attributed to the digital asset hitting $23,000, prompting investors to look toward potential short-term gains.

At the same time, CryptoQuant’s data and Cauconomy’s opinion suggest that the Puell Multiple, which is the ratio of the daily Bitcoin issuance, measured in dollars, to the 365-day moving average coins issuance, is exiting the red area. This could indicate a possible market top, mid-cycle or bearish condition.

Overall, the crypto fund inflow in the past week has been extremely bullish and has been dominated by Bitcoin [BTC]. This is a positive sign and could be indicative of further BTC price upticks in the future. However, it is important to remain mindful of the Puell Multiple, which could indicate a shift in market conditions. As such, investors should be vigilant and monitor the data closely.