- Digital asset investment products see a second week of outflows, totaling $584 million.
- This downturn may be influenced by investor skepticism regarding potential Fed rate cuts.
- Bitcoin saw the largest outflows, while some altcoins experienced modest inflows.
Discover the latest trends in the digital asset market with significant outflows and emerging altcoin opportunities amidst market volatility.
Altcoins Gain Amid Weak Market Sentiment
Bitcoin was primarily affected by the outflows, registering $630 million, although there wasn’t a significant rise in short positions. This aligns with the recent Digital Asset Fund Flows Weekly Report by CoinShares.
“The ongoing outflows amounting to $584 million signify a true market correction.”
Ethereum, which has attracted more attention this quarter, also faced outflows totaling $58 million this past week. Despite the bearish outlook, some altcoins like Solana, Litecoin, and Polygon saw inflows amounting to $2.7 million, $1.3 million, and $1 million, respectively.
Additionally, XRP and Chainlink-based investment products recorded minor inflows of $0.7 million and $0.3 million, respectively.
Europe-focused investors seem to perceive the downturn as a buying opportunity, as evidenced by the $98 million weekly inflow into multi-asset products. This indicates a strategy to diversify portfolios amidst the market weakness.
Switzerland and Brazil Defy Market Trends
Last week’s trading in crypto ETPs (Exchange Traded Products) hit a low, with global volumes reaching $6.9 billion, the lowest since the inception of spot Bitcoin ETFs in January this year. The United States led the outflows at $475 million, followed by Canada at $109 million.
Germany and Hong Kong were next, recording $24 million and $19 million in outflows, respectively, with Sweden noting minor outflows of $5.3 million.
Contrary to this trend, Switzerland and Brazil registered inflows of $39 million and $48.5 million, respectively, showcasing a more optimistic outlook in these regions.
Conclusion
The digital asset market is currently experiencing a correction, with significant outflows predominantly in Bitcoin and Ethereum. However, the inflows into some altcoins and multi-asset products indicate a strategic move by investors to diversify amidst the volatility. While the US and other major markets show outflows, Switzerland and Brazil present a contrasting positive sentiment. Investors need to stay informed and cautiously optimistic as market dynamics continue to evolve.
