- Crypto market sentiment is bearish, with altcoins experiencing outflows, while Bitcoin maintains resilience with inflows.
- Ethereum and Polygon face significant outflows, possibly due to regulatory concerns in the crypto market.
- Solana emerges as an exception among altcoins, attracting steady inflows and becoming a favored choice for investors.
Given the recent discussion between Bitcoin (BTC)’s price value and altcoins, it is no wonder that the cryptocurrency market is seeing a negative sentiment. In an unsurprising twist of events, there has been some frenzy in the crypto market, given the outflow from digital assets. Let’s take a look at the details of the numbers involved.
Outflows in Crypto-Sphere
In terms of digital asset investment product flows, there has been a relatively minor outflow, numbered at US$11.2. Given the run of negative sentiment over the last 7 weeks, the total is now at U.S$342M.
In this fiasco, Bitcoin has maintained its resilience. As the outflow amongst altcoins continues, BTC is standing at a $3.8 million inflow. BTC’s inflow in these circumstances is a standout event that has shocked many. While altcoins like Ethereum and Polygon find themselves in hot waters, BTC is standing tall in its glory.
Altcoins in Turmoil
Ethereum has faced an outflow of $3.2 million as per the recent records, and as for Polygon, it has been found the number is $8.6 million. While no specific reason for this turmoil can be gauged, it is safe to predict that one could be the regulatory concern in the crypto market. With market volatility and investor sentiments at a low, these figures aren’t much of a surprise for those who have a keen eye on the market.
As for Bitcoin, one can expect that Grayscale, with its significant role in Cathie Wood’s ARK Invest’s ETFs, has played a tremendous role. Indeed, the Grayscale Bitcoin Trust (GBTC) has been a pivotal player in the ARK Next Generation Internet exchange-traded fund (ARKW). Moreover, it is important to note that there has been a significant surge in trading volumes, which stood at $2.8 billion for the week, representing a significant increase compared to the year-to-date average.
Bitcoin VS Short Bitcoin Funds
In between these two, one can observe considerable diverging trends in investor activity. Short Bitcoin funds have experienced outflows for 19 consecutive weeks and a decrease of 48% in total assets under management (AuM) from this year’s peak. All this has happened while BTC has experienced tremendous inflow.
It is also important to note here that Solana has been an exception among altcoins. The coin has managed an inflow of $0.7 million in nine consecutive weeks. Solana’s year-to-date inflows of $26 million have positioned it as a favored altcoin among investors.
All in all, with Bitcoin’s resilience in attracting inflows despite the broader market trends, one can conclude that BTC is managing its position impressively. As the dynamic nature of the cryptocurrency market and the ongoing impact of regulatory considerations and investor sentiment continue, there will soon be more to be unveiled.