When bitcoin fell to six-month lows, investors who had entered the market later incurred enormous losses because of this decline.
Large outflows from the crypto market have occurred at the same time. This resulted as the major selloffs that have jolted the market. Bitcoin (BTC) and other digital assets are now seeing some inflows after a prolonged drought. As a result of this outflow trend beginning to reverse.
Resumption in Bitcoin Inflows
Bitcoin has had a positive week in the last several days. Despite falling to new lows, the digital asset has managed to rise to previous highs. Once again, it had surpassed $38,000. Reviving some confidence in the market. The same is true for institutional investors, albeit at a slower pace, as investors begin to reenter the bitcoin market.
According to the most recent CoinShares report, bitcoin has resumed seeing market inflows. This is a departure from the record-breaking outflows that occurred at the conclusion of 2021 and the beginning of 2022. As a result of the Fed’s minutes being made public, bitcoin saw a one-week outflow of $107 million. This was a new record.
However, the tide has turned in the last two weeks in favor of inflows. As CoinShares announced the first week of inflows following significant outflows. Since the beginning of the year, inflows have been steadily increasing.
According to reports, bitcoin inflows totaled $22 million over the course of the last week. By the third quarter of 2021, this was the norm, but it was nonetheless reassuring. Although BTC’s total AuM fell to a six-month low last week, this week’s increase is encouraging.
Altcoins Are Still Suffering
This time around, the movement of altcoins has not paralleled that of bitcoin. Altcoins have been bearing the brunt of market turmoil as outflows continue to be a daily occurrence.
Ethereum, a prominent altcoin, has seen inflows for the eighth week in a row. At the end of this week, the altcoin has lost $272 million. In fact, it is some of the most negative emotions about the digital asset.
Some of the most popular altcoins among investors, including Cardano, Poloniex and Polkadot, all seen their value plummet this week. Another week of outflows from these digital assets.
The performance of multi-asset funds and Blockchain equity investment products differed from the performance of altcoins. Each of them had inflows of $32 million for multi-asset funds and $15 million for Blockchain equities investment products. It followed the footsteps of bitcoin.
