Bitcoin and the crypto market as a whole had experienced outflows that coincided with the market’s major sell-offs. This led to the decline, which saw bitcoin hit six-month lows, while investors who had gotten into the market later suffered enormous losses. This outflow pattern is starting to turn, with bitcoin and other digital assets finally seeing inflows after a protracted dry spell.
Bitcoin inflows have resumed
Bitcoin’s performance over the last week has been encouraging. The digital asset is no longer at its historical highs, but it has recovered from its recent lows. It had risen to $38,000 once more, restoring some confidence in the market. On the institutional investor side, the trend is similar, albeit a little slower, as investors continue to return to bitcoin gradually.
According to the most recent CoinShares report, bitcoin has resumed market inflows. This was a departure from the end of 2021 and the beginning of 2022, when outflows were at an all-time high. Bitcoin alone had experienced outflows of $107 million in a single week, setting a new record after being greatly influenced by the Fed’s minutes.
However, the tide has shifted in the last two weeks, with CoinShares reporting the first week of inflows following enormous outflows. This trend has maintained throughout the last week, with inflows continuing.
Last week’s bitcoin inflows were reported to total $22 million. A minor amount in comparison to what had become the norm by the third quarter of 2021, but nonetheless reassuring. It’s an improvement over last week when BTC’s total AuM fell to a six-month low of $29 billion.
Altcoins Are Still Suffering
This time, altcoins have not followed bitcoin’s movement. Instead, cryptocurrencies continue to bear the brunt of the market’s bombardment as outflows remain the norm.
Ethereum, the leading altcoin, has now seen inflows for the eighth week in a row. During this time, the altcoin has had a total of $272 million flow out of the week, indicating some of the most unfavorable sentiments about the digital asset.
Other cryptocurrencies, including Cardano, Solana, and Polkadot, which are quickly becoming investor favorites, also fared poorly this week. Outflows from all of these digital assets continued this week.
The performance of multi-asset funds and Blockchain equity investment products differed from that of altcoins. Following in the footsteps of bitcoin, each of them received inflows for the week, with multi-asset funds receiving $32 million and Blockchain equities investment products receiving $15 million.
