Home Crypto Crypto sees outflows for 6th consecutive week, XRP and SOL gain investor confidence

Crypto sees outflows for 6th consecutive week, XRP and SOL gain investor confidence

by Janine Lindsey

Crypto investment products experienced their sixth consecutive week of outflows, according to data shared by CoinShares. Digital asset outflows totaled $9 million in the week ending on September 24th.

Bitcoin (BTC) saw outflows for the third consecutive week, with $6 million leaving the market. Short-bitcoin positions also experienced outflows of $2.8 million. Ethereum (ETH), on the other hand, registered its sixth consecutive week of outflows, with $2.2 million flowing out over the past week.

Interestingly, while ETH experienced outflows, other altcoins such as XRP and Solana gained traders’ trust. XRP saw net inflows of $0.66 million, while Solana received $0.31 million in inflows. This suggests that investors are becoming more discerning in the altcoin space, favoring certain cryptocurrencies over others.

The report also highlighted a divergence in sentiment between traders in Europe and the United States. European crypto investment products saw inflows of $16 million, while U.S.-based products experienced outflows of $14 million. This regional discrepancy was attributed to uncertainty surrounding crypto regulations and recent actions by the U.S. Securities and Exchange Commission (SEC) against crypto companies.

In addition, the report revealed a decline in weekly trading volumes, which dropped below $820 million. This is well below the average of $1.16 billion seen throughout 2023.

The current market sentiment, as reflected in the CoinShares report, leans toward bearish pressure. The price of Bitcoin has been struggling to break through the key resistance level of $27,000, remaining stagnant since the recent Federal Open Market Committee (FOMC) meeting. Additionally, delays in the payout to Mt. Gox creditors also influenced the market last week, but BTC remained relatively unaffected by these events.

Overall, the outflows from crypto investment products and the decline in trading volumes suggest a cautious approach from investors. However, the influx of funds into certain altcoins indicates that there is still interest and confidence in specific cryptocurrencies. The regional divergence in sentiment further highlights the importance of regulatory clarity in shaping market dynamics.

related posts