Crypto’s Six-Week Bleed Out: XRP And Solana Defy The Outflow Downtrend
With contrasting events in the industry, crypto investment products
have witnessed a continuous outflow for the sixth week. Some
altcoins demonstrate resilience in this trend, defying the broader
market sentiment. Dissecting The Crypto Outflow Trend Crypto funds
have witnessed a net outflow of $9 million in the past week, taking
the total to roughly $464 million over the last ten weeks,
according to Coinshares’ latest digital asset fund flow weekly
report. Related Reading: Crypto Fund Flows: Millions Exit Bitcoin,
But These Three Coins Hold Their Ground Relevant digital asset
management players like CoinShares, Grayscale, 21Shares, Bitwise,
and ProShares have felt the heat of this ongoing trend. To put
things into perspective, the outflows have cooled from the previous
week’s $54 million, but they still extend the continuous ten-week
streak of net capital movement away from these products. A closer
look into the report reveals this trend isn’t uniform across
regions. Europe has somewhat resisted this wave, recording inflows
of $16 million. James Butterfill, Research Head at CoinShares,
pinpoints the regional sentiment divergence to varying reactions to
the regulatory environment. According to Butterfill, European
investors see the “recent regulatory disappointment as an
opportunity,” while their US counterparts have pulled out $14
million, possibly due to dismay over recent events. Moreover,
trading volumes in crypto funds have reflected the same caution.
From exceeding $1 billion in the previous week, the volume plunged
to $820 million, substantially less than the yearly average of $1.3
billion. Not All Assets Feel The Pinch Bitcoin, the flag bearer of
crypto, hasn’t been immune to this trend, registering outflows for
three consecutive weeks, with a dip of $6 million in the past week
alone. Interestingly, Short-Bitcoin products, which gain when
Bitcoin prices fall, have seen outflows of $2.8 million. This
suggests a larger narrative where investors may unwind their
bearish bets on Bitcoin. According to Butterfill, this outflow
signifies a reduction of 78% in those assets under management over
the past 22 weeks. Ethereum, another heavyweight in the crypto
arena, has also felt the pinch, with outflows recorded for six
weeks consecutively, resulting in a recent reduction of $2.2
million. In contrast to the major players, XRP and Solana are
bright spots in the market. This week, they registered inflows of
$660,000 and $310,000, respectively. Interestingly, this isn’t the
first time these two altcoins have shone amidst the gloom. Last
week, both assets witnessed significant inflows. Solana led the way
with $700,000, followed by Cardano and XRP, which attracted inflows
of $400,000 and $100,000, respectively. While Cardano didn’t cut
notable inflows this week, XRP and Solana’s positive inflows
amid broader negativity suggest a selective and value-driven
approach by some investors in the altcoin market, according to the
report. Meanwhile, despite their recorded upward capital
movements, XRP and Solana still feel the brunt of the global crypto
market downturn. Related Reading: FTX’s Billion-Dollar Solana
Liquidation: Market Crash Or Just Hype? Particularly, both assets
have been in red, with XRP down by 1.5% in the past day with a
current price of $0.50 and Solana seeing a slight 0.5% upward move
over the same period with a trading price of $19.60 at the time of
writing. Featured image from iStock, Chart from TradingView
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