Last Week’s Outflows End 11-Week Run of Inflows
Last week, investment products in the crypto market experienced minor outflows, marking the end of an 11-week streak of inflows, according to a report by CoinShares. Despite the outflows, trading activity remained significantly higher than the yearly average, reaching $3.6 billion for the week compared to the year-to-date average of $1.6 billion.
Regional Breakdown of Outflows and Inflows
The United States and Germany saw the largest withdrawals of funds, with $18 million and $10 million respectively. However, Canada and Switzerland experienced inflows of $6.9 million and $9.1 million respectively, partially offsetting the outflows.
Bitcoin Leads in Outflows, Altcoins Receive Influx
Bitcoin (BTC) was hit hardest by outflows, totaling $33 million. On the other hand, altcoins received an influx of $21 million. Solana (SOL), Cardano (ADA), XRP, and Chainlink (LINK) were among the main beneficiaries, receiving $10.6 million, $3 million, $2.7 million, and $2 million respectively. Ethereum (ETH) and Avalanche (AVA) also experienced slight outflows.
Positive Sentiment for Blockchain Stocks
Blockchain stocks continued to see positive sentiment as they witnessed strong inflows of $122 million last week. This brings their growth to an impressive $294 million over the past 9 weeks. Additionally, analysts reported recording the largest inflow of funds in history into blockchain stocks, surpassing $126 million in total investments.
Predictions for Price Decline and Market Correction
Many experts anticipate a decline in crypto prices as investors typically take profits after a period of strong growth. This could potentially lead to a market correction in the near future.
Hot Take: The End of an Inflow Era
Last week marked the end of an 11-week streak of inflows for investment products in the crypto market. While outflows were minor, they signify a shift in investor sentiment. Altcoins received an influx of funds, with Solana, Cardano, XRP, and Chainlink being the main beneficiaries. On the other hand, Bitcoin experienced significant outflows. Blockchain stocks, however, continued to see positive sentiment and strong inflows. With predictions of a price decline and potential market correction, it will be interesting to see how the crypto market evolves in the coming weeks.
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