Crypto Inflows Stall as Investors Take Profits
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After 11 weeks of steady growth, the inflows into digital asset investment products slowed down last week as investors cashed out some of their gains. According to CoinShares, a leading provider of digital asset data, the total outflows amounted to $16 million, while the trading volume remained high at $3.6 billion.
The outflows were mainly concentrated in the US and Germany, which saw $18 million and $10 million, respectively. On the other hand, Canada and Switzerland continued to attract more funds, with $6.9 million and $9.1 million, respectively. CoinShares attributed the mixed regional flows to profit-taking rather than a change in market sentiment.
Solana, XRP, and Cardano Record Decent Crypto Inflows
Among the different digital assets, Bitcoin was the most affected, losing $33 million last week. Even short-bitcoin products, which allow investors to bet against the price of bitcoin, saw minor outflows of $300,000.
However, not all cryptocurrencies suffered the same fate. Altcoins, which are alternative cryptocurrencies to Bitcoin, saw $21 million in inflows last week. The most popular ones were Solana, Cardano, XRP, and Chainlink, which received $10.6 million, $3 million, $2.7 million, and $2 million, respectively. Ethereum and Avalanche, two other prominent altcoins, saw slight outflows of $4.4 million and $1 million, respectively.
Another segment that performed well was blockchain equities, which are stocks of companies that are involved in the blockchain industry. These equities saw inflows of $122 million last week, bringing the total inflows in the last nine weeks to $294 million, the highest level ever recorded by CoinShares.
The slowdown in crypto inflows coincided with a drop in the price of Bitcoin, which fell by almost 8% over the past week, breaking an eight-week streak of gains. As of the time of this report, Bitcoin is currently trading at around 41,500 as bulls fight back.
