Bitcoin and Ether Experience Significant Outflows, While XRP and Solana See Inflows
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In a recurring trend, cryptocurrency investment products have once again witnessed a downturn, marking their sixth consecutive week of outflows, according to data unveiled by CoinShares.
For the week ending September 24, the digital asset market experienced a significant withdrawal of funds, tallying $9 million in outflows.
Bitcoin’s Exodus Continues; Ether Follows Suit
The world’s premier cryptocurrency, Bitcoin, found itself in a precarious position as it recorded its third consecutive week of outflows, amounting to a substantial $6 million loss within the past week.
Investors seemed reluctant to hold their positions, with short Bitcoin positions alone seeing a substantial outflow of $2.8 million. Meanwhile, Ether, the second-largest cryptocurrency by market capitalization, also grappled with a dire situation, marking its sixth consecutive week of outflows, with a total of $2.2 million leaving the market over the week.
Altcoins Buck the Trend
In a surprising twist, some altcoins managed to swim against the current. XRP and Solana, in particular, witnessed inflows of $0.66 million and $0.31 million, respectively. This trend indicates a growing interest among investors in the alternative cryptocurrency space, with continuous capital inflows into XRP and SOL.
The report from CoinShares highlighted a stark contrast in sentiment between European and U.S. investors. European crypto investment products enjoyed a healthy influx of $16 million, while their U.S. counterparts faced an exodus, with $14 million flowing out.
This regional disparity can be attributed to the uncertainty surrounding cryptocurrency regulations and recent actions taken by the U.S. Securities and Exchange Commission (SEC) against various crypto companies.
Furthermore, the report revealed a concerning trend as weekly trading volumes plummeted below $820 million, significantly below the 2023 average of $1.16 billion. This dip in trading activity reflects the current bearish pressure in the digital asset market.
Filed under: Bitcoin - @ September 25, 2023 1:23 pm