• 29 May, 2024
News

Altcoins Attract Investors as Bitcoin Experiences Outflows

The cryptocurrency market witnessed a fourth week of consecutive outflows, predominantly led by Bitcoin, according to digital assets investment group CoinShare’s weekly fund flow report. Despite this, altcoins such as Cardano, Tron, and Sandbox experienced inflows, suggesting an adventurous shift in investor behavior.

The report added that investors were becoming more “adventurous,” pointing to the altcoin inflows as evidence. However, the report added that Binance was the sole altcoin to record outflows during this period.

Bitcoin’s outflows accounted for 80% of the total outflows, totaling $38 million. Interestingly, the outflows were primarily centered in Europe, while in the U.S., 84% of the outflows stemmed from investors selling their short positions.CoinShares added:

The recent investor activity has almost solely been focused on the asset.

Simultaneously, traditional market indices, including the Nasdaq and S&P 500, also dipped, mirroring the roughly 3% decrease in Bitcoin and Ether prices over the week.

In a related report from the global capital markets data platform PitchBook, the first quarter of 2023 saw crypto-focused companies raising $2.6 billion across 353 investment rounds. This marked a quarter-on-quarter decrease of 12.2% in the number of deals and 11% in deal value, representing the fourth straight quarter of decreasing investment activity.

The PitchBook report also pointed out mixed valuation trends across different stages of investment rounds. While seed and late-stage investment rounds saw a substantial rise compared to 2022, early-stage rounds recorded a slump.

Furthermore, the report underscored that the total funds raised and deals completed were significantly lower compared to the previous year, reflecting the ongoing bearish trend in crypto investment. Despite this, venture capital firms managed to secure numerous deals, indicating continued faith in the crypto sector.

Bithumb’s Profit for the First Quarter of 2023 Falls by 80% Read Previous

Bithumb’s Profit for the First Quarter of 2023 Falls by 80%

PEPE’s Rising Popularity Renews Investors’ Interest In Memecoins Read Next

PEPE’s Rising Popularity Renews Investors’ Interest In Memecoins