• 15 October, 2024
News

Bitcoin Dominates Weekly Outflows As Altcoins Show Resilience

Bitcoin Dominates Weekly Outflows As Altcoins Show Resilience

Amidst the ever-changing realm of digital asset investments, this week’s market activity unveiled a notable departure, with outflows reaching a substantial $107 million, and Bitcoin reaching $111 million. The ongoing trend of profit-taking has gathered momentum in recent weeks, with investors strategically managing their positions amid a sluggish summer market. Weekly trading volumes in investment products were 36% below the year-to-date average.

In comparison, the broader on-exchange market faced even steeper declines of 62% relative to the YTD average. Offering valuable market insights, renowned blockchain analyst Wu Blockchain took to Twitter, shedding light on the fluidity of the digital asset landscape.

As the focus shifts to regional trends, two prominent ETP (Exchange-Traded Product) providers in Germany and Canada experienced the heaviest outflows. Germany’s ETP sector saw $71 million exiting the market, while Canada followed closely with outflows totaling $29 million.

However, all eyes are firmly fixed on Bitcoin, which experienced a significant outflow of $111 million. This is the most considerable weekly departure since March when the crypto markets were shaken by increased regulatory scrutiny in the United States. Nevertheless, amidst the turbulence, there is hope as outflows from short Bitcoin positions have ceased for the first time in 14 weeks.

On the Ethereum front, the network also experienced outflows, although of a lesser magnitude, amounting to $6 million. The total outflows for Bitcoin and Ethereum reached $117 million last week. While the leading cryptocurrencies grappled with significant outflows, the altcoin market showcased resilience and a promising upward sentiment. Solana emerged as the clear winner, attracting the most significant inflows, totaling a substantial $9.5 million. This surge represents the most substantial single-week influx since March 2022, signaling growing investor interest in the Solana ecosystem.

Other altcoins, including XRP and Litecoin, also experienced notable inflows. XRP saw $0.5 million flowing into the network, while Litecoin secured $0.46 million in fresh investments. Conversely, Uniswap and Cardano faced minor outflows, with $0.8 million and $0.3 million withdrawn, respectively.

As the digital asset landscape evolves, investors are navigating through challenges and opportunities. The market’s focus on Bitcoin outflows reflects the impact of regulatory developments, while altcoins demonstrate resilience, attracting new inflows and potentially heralding the beginning of a shift in sentiment.

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