Cryptocurrency assets have recently experienced changes in their inflows and outflows, as reported by the latest Digital Asset Fund Flows Weekly Report from CoinShares. In this report, Bitcoin emerged as the biggest gainer, while Ether faced outflows for the seventh consecutive week. Additionally, various factors, including positive price momentum and concerns about government debt prices, have contributed to these fluctuations.
Bitcoin (BTC) and Solana (SOL) were the only assets that showed inflows during the specified period. Bitcoin recorded a substantial inflow of $20.4 million, while Solana secured $5 million. CoinShares recognizes Solana as the most loved altcoin this year due to its consistent inflows, with only four outflow weeks in 2023.
On the other hand, Ether (ETH) faced outflows of $1.5 million, marking its seventh consecutive week with negative flows. CoinShares highlights Ether as the least loved altcoin based on this consistent outflow trend. Other altcoins, such as XRP, also experienced negative and minimal inflows, suggesting their struggle to gain momentum alongside Bitcoin’s trend-breaking performance.
CoinShares attributes the recent inflows to a combination of positive price momentum, concerns over US government debt prices, and ongoing debates around government funding. The potential shutdown of the US government on Oct. 2 due to a funding bill stalemate had raised fears among investors. However, a last-minute stopgap measure ensured funding until Nov. 17. The uncertainty surrounding future government funding remains unresolved, which impacts investor sentiment.
In terms of geographical inflows, Germany, Canada, and Switzerland led the way, recording inflows of $17.7 million, $17.2 million, and $7.4 million, respectively. Meanwhile, Australia maintained a minimal inflow of $100,000, while France witnessed zero inflows. Conversely, the United States recorded significant outflows of $18.5 million, followed by Sweden and Brazil with outflows of $1.8 million and $900,000, respectively.
The recent inflows and outflows in cryptocurrency assets highlight the dynamic nature of this market. While Bitcoin and Solana attracted significant inflows, Ether struggled with continuous outflows. The impact of positive price momentum, concerns over US government debt prices, and ongoing negotiations over government funding contributed to these fluctuations. Geographically, Germany, Canada, and Switzerland dominated the inflows, while the United States faced significant outflows. As the cryptocurrency market evolves, investors need to consider various factors that influence these inflows and outflows to make informed decisions.