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Here's what's moving the cryptocurrency market this week 📊 Digital assets are historically known for increased volatility, however, the market is currently experiencing an extreme volatility compression. Fewer than 5% of trading days have a tighter trade range. Bitcoin and the overall cryptocurrency market are in a consolidation phase.

Dogecoin (DOGE) has been making waves in the market, attracting attention from investors, enthusiasts, and the broader public. This playful and meme-inspired digital currency emerged in 2013 and was initially considered a joke. However, its popularity skyrocketed due to widespread social media exposure and the support of influential figures like Elon Musk.

We saw a remarkable surge in assets under management (AUM) for crypto funds in recent years. From 2018 to 2022, these funds have experienced substantial growth, and the trend continued with a significant spike in AUM in July 2023. Since the beginning of 2018, the AUM of crypto funds has been on an upward trajectory, reflecting the increasing interest and investment in the digital asset space.

Bitcoin Under Pressure Since Bitcoin printed a new yearly high at roughly $31,800, downside pressure has moved into the cryptocurrency market. Bitcoin is down roughly 2% from Monday's open and 9% since the new yearly high on the 13th of July. At the same time, a rotation into the US Dollar Index can be observed.

▶ Institutional Inflows: Over the previous four weeks, institutional inflows into digital asset investment products have increased by more than US$742 million, marking the longest streak of inflows since the fourth quarter of 2021. Last week, Bitcoin witnessed inflows of US$140 million, or 99% of all inflows.

🚀 XRP Takes Center Stage: XRP HODLERS have finally been rewarded, with the crypto closing almost 70% higher than it opened yesterday. XRP touched highs of USD 0.945 before marginally retreating to USD 0.7735. The case between the SEC and Ripple has finally concluded.

Digital Asset Institutional Inflows Following 8 weeks of institutional withdrawals from digital asset-related investment products, the market experienced its greatest institutional weekly inflows in over a year, totalling U$199 million. Because of the several Bitcoin spot ETF applications in the US, institutional inflows have recovered to the tune of $334 million in the last two weeks (data courtesy of Coinshares).

The cryptocurrency market in the first half of 2023 has been a whirlwind of volatility and regulatory scrutiny. Despite the challenges, digital currencies have managed to hold their value and deliver positive price movements. One of the significant events shaping the crypto market was the increased regulatory oversight by the US Securities and Exchange Commission (SEC).

After strong gains across the cryptocurrency market the week previous, Bitcoin is currently consolidating around the 31,000 level of resistance. However, over the past week, roughly US$200 million of institutional liquidity flowed into digital asset investment products, the largest weekly inflow since July 2022. The inflows offset more than half of the institutional outflows over the past 9 weeks.