In an eventful twist, recent data from CoinShares indicates a notable shift in the disposition of crypto investors. The week-long crypto asset fund flows report from this premium European digital asset manager indicates that crypto investment products registered $644 million in inflows during the past week, breaking the prior five-week streak of outflows. This influx comes after an extended period of bearish sentiment, signaling perhaps, a change in investor attitudes toward digital assets.
Bitcoin Fuels Recovery as Ethereum Experiences Largest Outflows
James Butterfill, the research chief at CoinShares, revealed that “the total assets under management have seen an increase of 6.3% from their lowest point on March 10th”. He also mentioned that inflows had been documented each day of the past week, marking a distinct switch from the preceding 17 days of continuous outflows.
This trend could indicate a more favorable inclination of investors toward digital assets. Bitcoin, in particular, was a substantial part of the inflow data from the past week, pulling in $724 million in fresh capital and putting an end to its own five-week streak of outflows that measured up to $5.4 billion.
On the other hand, Short Bitcoin products, which yield profits from BTC price dips, saw outflows for the third consecutive week, amassing a total of $7.1 million. This could hint at a decreasing bearish anticipation among investors.
The altcoin space, however, presented a mixed bag. Ethereum saw the most significant outflows of any digital asset, with $86 million leaving ETH investment products. Other altcoins like Sui and Polkadot each experienced outflows of $1.3 million, while Tron and Algorand witnessed losses of $0.95 million and $0.82 million respectively.
In contrast, Solana made a name for itself as the most favored altcoin in terms of investor interest, recording inflows of $6.4 million. Following closely were Polygon and Chainlink with modest gains of $0.4 million and $0.2 million.
Global Crypto Market Performance
Despite the fund flows registered last week, the crypto market has started on a bullish note this week. Bitcoin rose by nearly 5% to restore its price above $87,000 in the wee hours of Monday. The asset, at the time of writing, continues to float above $87,000, trading at $87,517, marking a roughly 5.1% increase over the past week.
Interestingly, despite these numbers, the asset remains at a double-digit deficit from its all-time high (ATH) of above $109,000 recorded in January. According to data from Coingecko, at the current market rates, BTC is down by approximately 19.8% from this peak.
Even Ethereum, which has been locked in a bearish trend, has experienced an uptick. Over the past day, the asset rose by 3.3%, and in the last week, ETH surged by almost 10%, increasing its current trading price to $2,083.
What is causing this shift in the crypto market?
The crypto market is highly volatile and influenced by various factors such as regulations, technological advancements, macroeconomic conditions, and investor sentiment. The recent uptick could be due to positive news or changing market dynamics.
Does this mean Bitcoin is making a comeback?
Based on the current market trends and inflows, Bitcoin appears to be regaining traction. However, it’s essential to remember that market trends can change rapidly due to the inherent volatility of cryptocurrencies.
Is it a good time to invest in Ethereum?
While Ethereum has recently seen outflows and a bearish trend, it showed an uptick in the past week. However, investment decisions should always be based on thorough research and personal financial situations.
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