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According to CoinShares’s latest ‘Digital Asset Fund Flows Weekly report,’ investors in digital asset investment, products witnessed significant outflows this week, totaling $107 million, as profit-taking gained momentum amidst the prevailing summer lull. With trading volumes for investment products 36% below the year-to-date average, and broader on-exchange market volumes experiencing a more substantial 62% decline relative to the YTD average, market activity remains muted, the report stated.
Bitcoin Sees Largest Weekly Drop Since March
Germany and Canada were the focal points of outflows, with two ETP providers suffering $71 million and $29 million in outflows, respectively. Bitcoin, the center of attention, accounted for the lion’s share of these outflows, with a total of $111 million – the largest weekly exodus since March, coinciding with heightened regulatory scrutiny in the United States.
The report also states that the flow of assets into short Bitcoin has stopped after 14 weeks in a row. Ethereum also saw withdrawals over the week, totaling $6 million, which added up to a combined $117 million outflow from both Bitcoin and Ethereum.
The altcoin market began to show signs of hope, which helped counteract the withdrawals of Bitcoin and Ethereum. With inflows reaching $9.5 million, Solana stood out as the region with the highest weekly inflow since March 2022. Litecoin and XRP both experienced moderate inflows, bringing in $0.46 million and $0.5 million, respectively. However, not all altcoins shared the positive sentiment. Uniswap and Cardano experienced outflows of $0.8 million and $0.3 million, respectively, underlining a diversified market landscape.
Are Altcoins The Hope?
While Bitcoin’s dominance in the outflows scene remains significant, the increased inflows into certain altcoins indicate a potential shift in investor preferences and market dynamics. Some of the winning altcoins are Shiba INU, XRP, and Litecoin. In fact, according to analyst Michael van de Poppe, took to X (Twitter) to inform his followers, if Bitcoin breaks over the psychological mark of $30,000 and retests it as support, altcoins could increase in value.
The Crypto Greed and Fear Index is still around 50/100, which is considered to be neutral. The current volume of the cryptocurrency market is $23.48 billion, which is a significant increase. However, the market’s general sentiment remained neutral.
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