James Butterfill, the Head of Research at Coinshares, disclosed a significant shift in the cryptocurrency market during christmas. After a phase of net outflows, the market has seen a notable reversal with a substantial inflow of investments. This trend change is a departure from the prior 11 consecutive weeks of inflows, marking a pivotal moment in the crypto investment landscape.

During the week leading up to Christmas, Butterfill noted an impressive influx of $103 million in digital assets. This information came as a refreshing update in the crypto community, especially considering the preceding week’s outflow of $16 million, which had interrupted the continuous inflow streak.

Trading Activity Maintains Momentum

Interestingly, despite these fluctuations, the trading activity in the cryptocurrency market has been robust, surpassing the year’s average. The total trading volume for the week amounted to a substantial $3.6 billion, indicating a healthy and active market despite the earlier outflows.

The real highlight of the week was the performance of altcoins. Altcoins like Solana, Cardano, XRP, and Chainlink emerged as the frontrunners, collectively attracting $21 million in inflows. This surge in altcoin investments underscores the growing interest and diversification in the cryptocurrency market beyond the dominant Bitcoin.

Bitcoin ETFs Stir Debate

The market has also been buzzing with discussions about the potential approval of a Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). This development has been a topic of intense speculation, with many pondering the implications for the broader crypto market.

Adding to the discourse, BitMEX founder Arthur Hayes expressed concerns on December 23. He warned about the possible challenges that Bitcoin might face with the launch of spot Bitcoin ETFs. Hayes emphasized that if these ETFs, managed by traditional asset managers, become overly successful, they could pose a significant threat to the very essence of Bitcoin.

The post Christmas Boosts Crypto Inflows Over $100M After Last Week’s Drop appeared first on Crypto Academy.

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Filed under: Bitcoin - @ December 27, 2023 8:12 am