1. Why is dollar weakness supporting Bitcoin?
A weaker US dollar can increase demand for scarce alternative assets by reducing the relative appeal of holding cash. Bitcoin benefits from this narrative as its supply is capped at 21 million BTC.
2. How much money flowed into Bitcoin ETFs last week?
Spot Bitcoin ETFs recorded about USD 1.918 billion in net inflows last week. BlackRock’s IBIT led with USD 1.331 billion, followed by Fidelity’s FBTC with USD 293 million.
3. Why is Bitcoin considered a hard asset?
Bitcoin has a fixed maximum supply of 21 million coins and a predetermined issuance schedule. This scarcity gives it characteristics that investors often compare with assets such as gold.
4. Is Bitcoin a safer haven than gold?
Bitcoin is much more volatile than gold and has experienced sharper drawdowns. It is therefore better viewed as a high-beta scarce asset rather than a conventional safe-haven asset.
5. Is the broader crypto market also recovering?
Yes. According to CryptoQuant analyst Darkfost, USD 215 billion flowed into altcoins between August 19 and August 22, pushing Total2, which excludes Bitcoin, above USD 1 trillion.