During a dynamic week in the digital asset market, investors were observed capitalizing on their long-Bitcoin investment products, as indicated by Coinshares’ Digital Asset Fund Flows Weekly Report.
The report unveils a striking statistic 93% of the outflows originated from long-Bitcoin products. Simultaneously, short-Bitcoin experienced its fourteenth consecutive week of outflows, reaching $3.1 million. Looking at the half-year mark, we observe that digital assets have witnessed nearly $0.5 billion in inflows, indicating an overall positive sentiment towards this particular asset class.
Investors are showing an interesting shift in their focus towards altcoins, except for Ethereum, which has been gaining popularity. In just the previous week, altcoin inflows reached an impressive $3 million. Over the past eight weeks, these inflows have amounted to a substantial $19 million.
Low Trading Volumes Impact Bitcoin Market
During the same period, digital asset investment products experienced minor outflows totaling $21 million. Low trading volumes of just $915 million for the week, compared to the $1.5 billion weekly average so far this year, suggest a temporary slowdown in market activity.
This trend is mirrored in the broader Bitcoin market, which recorded $16 billion in trades last week on reputable exchanges, significantly lower than the weekly average of $52 billion witnessed throughout the year.
Taking a closer look at the geographical distribution of investor sentiment, North America faced a particularly negative turn, with outflows of $11 billion from both the US and Canada. In contrast, Germany saw modest inflows of $5 million, while Switzerland and Sweden experienced outflows of $3.2 million and US$2.6 million, respectively.
Returning to the focus on Bitcoin, it is evident that investors are capitalizing on the recent price movements by locking in their gains. This move reinforces the supportive stance that market participants have held towards the asset despite the profit-taking activities.
On the other hand, Altcoins have been the center of attention, with Cardano, Solana, and XRP receiving the most significant inflows of $0.64 million, $0.6 million, and $0.5 million, respectively. However, Ethereum and Avalanche encountered minor outflows, amounting to $1.9 million and $0.4 million, respectively.
Nevertheless, it remains to be seen how these trends will evolve over the coming weeks and months as the global economic landscape and regulatory environment continue to play vital roles in shaping the market.
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