Cryptocurrency Sees First Inflow in Six Weeks, Bitcoin and Solana Lead the Charge
Summary:
The week of Sep. 22-28 marked the first inflow of cryptocurrency assets in six weeks, as detailed in the latest report by CoinShares. Bitcoin topped the list with inflows totaling $20.4 million. Solana was the second significant benefactor with inflows of $5 million, securing its spot as the most favored alternative coin of the year. In contrast, Ethereum marked its seventh week of outflows, making it the least popular. Internationally, Germany, Canada, and Switzerland led in inflows, whereas the United States, Sweden, and Brazil saw notable outflows.
For the first time in six weeks, the period from Sep. 22-28 saw an increase in cryptocurrency assets, as reported by European digital asset management firm, CoinShares, in their recent Digital Asset Fund Flows Weekly Report. The largest benefactor was Bitcoin, which experienced $20.4 million worth of inflows over the week.
Solana emerged as the second most substantial asset garnering inflows, with a total of $5 million. According to CoinShares, Solana has had inflows for 27 weeks and only four weeks of outflows in 2023, making it "the most cherished alternative coin" of the year. Conversely, Ethereum experienced outflows worth $1.5 million, marking its seventh straight week of outflows and securing its position as "the least favored altcoin."
Regarding other alternative coins, including XRP which recorded higher inflows than Solana the preceding week, there were slight and negative flows. CoinShares' analysts suggest that several factors might be contributing to this static movement of altcoins alongside Bitcoin's momentum shift. They noted that these inflows appeared to be a response to positive price momentum, anxiety over US government debt prices, and recent uncertainty surrounding government funding.
This uncertainty relates to ongoing negotiations concerning U.S. government funding. Earlier last week, fears that a deadlock primarily caused by republicans would lead to a government shutdown on Oct. 2. However, last-minute efforts by Senate leaders facilitated a temporary measure that ensures funding until November 17. As of now, it is unclear whether the Congress and the President will agree on the terms to provide funding beyond this current measure.
From a global perspective, Germany, Canada, and Switzerland led the week with inflows of $17.7 million, $17.2 million, and $7.4 million, respectively. Australia and France remained constant, with $0.1 million for Australia and no movements for France. Contrarily, the United States recorded $18.5 million in outflows, with Sweden and Brazil reflecting similar trends, with outflows of $1.8 million and $0.9 million, respectively.
Published At
10/3/2023 6:00:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.