Cryptocurrency Inflows Return After Six Weeks
A recent report from CoinShares reveals that cryptocurrency assets experienced inflows for the first time in six weeks from September 22 to 28. The biggest gainer was Bitcoin (BTC), with inflows totaling $20.4 million for the week. Solana’s SOL also showed inflows of $5 million, making it the only other asset to see positive movement. On the other hand, Ether (ETH) experienced outflows of $1.5 million, marking its seventh consecutive week of outflows and solidifying its status as the least loved altcoin.
Factors Influencing Altcoin Movement
According to CoinShares analysts, the lack of movement in altcoins, apart from Bitcoin’s positive momentum, can be attributed to a combination of factors. These include positive price momentum, concerns over US government debt prices, and ongoing quagmire over government funding.
Ongoing Negotiations Over US Government Funding
The ongoing negotiations over US government funding have caused uncertainty in the market. Fears over a funding bill stalemate had initially led to predictions of a government shutdown on October 2. However, Senate leaders managed to pass a stopgap measure that ensures funding through November 17. The future funding of the government beyond this date remains uncertain.
Geographical Trends
Germany, Canada, and Switzerland led the charge in terms of inflows during the week, with amounts totaling $17.7 million, $17.2 million, and $7.4 million respectively. Australia and France had minimal inflows at $100,000 and zero respectively. On the other hand, the United States saw outflows of $18.5 million, followed by Sweden with $1.8 million and Brazil with $900,000.
Hot Take: Cryptocurrency Inflows Resume Following Six-Week Drought
The latest report from CoinShares reveals a positive shift in the cryptocurrency market as inflows return after six weeks. Bitcoin remains the top gainer with significant inflows, while Solana also shows positive movement. However, Ether continues to experience outflows, solidifying its status as the least loved altcoin. The lack of movement in altcoins can be attributed to a combination of factors, including positive price momentum and concerns over government funding. Geographically, Germany, Canada, and Switzerland lead in terms of inflows, while the United States sees significant outflows. Overall, this report highlights the ongoing volatility and uncertainty in the cryptocurrency market.
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