Cryptocurrency assets experienced a positive trend in the week of September 22-28, according to the latest Digital Asset Fund Flows Weekly Report from CoinShares. This marks the first time in six weeks that inflows have been observed in the cryptocurrency market.
Bitcoin was the biggest gainer during this period, with inflows totaling $20.4 million. This positive movement is seen as a reaction to positive price momentum and concerns over US government debt prices.
Solana, another popular digital asset, also recorded inflows of $5 million. CoinShares noted that Solana has had 27 weeks of inflows in 2023, making it “the most loved altcoin this year.”
On the other hand, Ethereum experienced outflows of $1.5 million. This is the seventh consecutive week of outflows for Ethereum, solidifying its status as “the least loved altcoin.”
Other altcoins, including XRP, also saw negative and minimal flows during this period. CoinShares attributed the lack of movement in altcoins alongside Bitcoin’s positive momentum to a combination of factors, including concerns over US government debt and the recent uncertainties over government funding.
The ongoing negotiations over US government funding have raised fears of a shutdown. However, a last-minute effort by Senate leaders resulted in the passage of a stopgap measure that ensures funding through November 17. The possibility of a government shutdown beyond this date remains uncertain.
In terms of geographical inflows, Germany, Canada, and Switzerland led the way with $17.7 million, $17.2 million, and $7.4 million respectively. Australia and France saw minimal inflows, while the United States experienced outflows of $18.5 million. Sweden and Brazil also had significant outflows at $1.8 million and $0.9 million respectively.
Overall, the positive inflows in the cryptocurrency market after weeks of outflows indicate a shift in investor sentiment. Bitcoin and Solana’s strong performance suggests increased confidence in these assets, while Ethereum continues to face challenges. The ongoing government funding discussions in the US further contribute to the uncertainty in the market.
