Bitcoin and other cryptocurrencies experienced a surge in investments after six weeks without significant inflows. This finding comes from the latest Digital Asset Fund Flows Weekly Report by CoinShares, a prominent digital asset management firm based in Europe.
Bitcoin emerged as the top performer, attracting inflows totaling $20.4 million during the week.
Solana has securely clinched the second position with a significant inflow of $5 million, proudly standing as the sole asset that shows positive activity. In line with CoinShares’ data, this achievement extends its streak to 27 consecutive weeks of inflows, experiencing only four brief periods of outflows in 2023. These numbers undeniably establish Solana as “the most favored altcoin of the year.”
In contrast, Ethereum experienced outflows amounting to $1.5 million, further extending its streak of seven consecutive weeks displaying negative activity. According to CoinShares, this solidifies its position as “the least favored altcoin.”
In contrast, other altcoins like XRP experienced negative flows and maintained minimal levels, despite XRP witnessing more inflows than Solana in the previous week.
Analysts Point To Reasons For Altcoin Inactivity Amid Bitcoin Unconventional Momentum
When compared to Bitcoin momentum, which defies conventional trends, analysts from CoinShares claim that there are some reasons why alternative crypto has yet to move significantly. They suggest that these inflows are a response to various elements including positive price momentum, concerns regarding U.S. government debt prices, and recent complications surrounding government funding.
The situation mentioned by CoinShares relates to the ongoing discussions surrounding U.S. government funding. In the previous week, concerns arose about a potential deadlock caused by Republican actions, leading to predictions of a U.S. government shutdown on Oct 2.
However, last-minute efforts from Senate leaders resulted in the approval of a temporary funding measure that ensures financial support until Nov 17. The uncertainty remains regarding whether Congress and the President can reach an agreement to extend funding beyond the expiration of the current measure.
Regarding geographical distribution, Germany, Canada, and Switzerland emerged as the leading countries for the week. Germany attracted inflows of $17.7 million, while Canada recorded inflows of $17.2 million. Switzerland followed closely with inflows of $7.4 million. On the other hand, Australia experienced a modest influx of $0.1 million, while France remained relatively inactive during this period.
The United States stood apart from Europe and Canada as it experienced outflows totaling $18.5 million. Following suit, Sweden and Brazil also witnessed outflows of $1.8 million and $0.9 million, respectively.
Related Reading | Franklin Templeton CEO: Tokenization ‘Steroid-Powered’ Impact
“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”
Comments (No)