In an unusual twist of circumstances, the crypto market has witnessed a reversal in its extended period of outflows. According to a recent report by CoinShares, digital assets suddenly saw their first inflow of $21 million following six consecutive weeks of increasingly red figures. This comes as a breath of fresh air in an enduring bear market severely affecting asset prices, miner profits and wider acceptance of cryptocurrencies.
Many were prepared for another week in the red as trading started, but everything took an unexpected turn on Friday. This unexpected momentum swing came about partly because of a slight price momentum, strategic moves by institutions, and the ongoing United States government funding issue.
The market leader, Bitcoin (BTC) experienced inflows after a long stretch of losses, charting a solid $20 million. This adds some verve to the otherwise dismal scenario where Short-Bitcoin faced $1.5 million in outflows, bringing the outflow total since April to an intimidating $85 million.
On the other hand, ETH performance has remained unimpressive, experiencing outflows of $1.5 million and extending its seventh straight week of outflows. This disappointing run is despite a significant boost in ETH prices from last year and hype around an Ethereum exchange traded fund (ETF).
Interestingly, amidst minimal altcoin activity, Solana (SOL) has consistently drawn the attention of institutional investors. Dubbed the ‘ETH Killer’, Solana registered inflows of $5 million, indicating its 27th consecutive week of gains and clocked its highest total value locked (TVL) at $338.8 million.
Nevertheless, the overall picture still reflects an improvement from the preceding week when digital asset products saw outflows of $9 million, marking their sixth consecutive loss, with BTC taking the brunt of it. Moreover, trading volumes have faced a downturn regardless of quarter-to-quarter growth of investment products. Meanwhile, blockchain equities witnessed a drain of $8.4m after traditional tech stocks went south.
The situation has seen mixed responses regionally. While Europe and Canada recorded substantial inflows of $23 million and $17 million respectively, the United States underwent outflows of $19 million. The low key appeal towards the US has a lot to do with the criticism faced by the Securities and Exchange Commission (SEC) for its excessively restrictive regulations that are alienating investors and builders. Lauded for its liberal stance, Europe has continued to set the pace with clear regulations, recording impressive inflows of $16 million concurrently as US investors pulled out $14 million.
Source: Cryptonews
