Institutional Investors Shift Focus to Altcoins as Bitcoin and Ethereum Face Decline
As Bitcoin and altcoins started the week with a downward trend, the price of BTC fell below $61,000. Amidst speculations about the future of BTC and the cryptocurrency market, Coinshares released its weekly cryptocurrency report.
According to Coinshares, there was a significant outflow of $584 million in cryptocurrency investment products last week, indicating an imminent correction. This outflow brings the total outflow to $1.2 billion for two consecutive weeks.
Coinshares believes that this outflow is a response to investors’ pessimism regarding the possibility of the Federal Reserve cutting interest rates this year. They also suggest that the additional outflow of $584 million is a clear indication that a real correction is on the way.
When examining individual crypto funds, it was observed that the majority of outflows were from Bitcoin. BTC experienced an outflow of $630 million, while the second-largest altcoin, Ethereum, saw an outflow of $58.3 million. On the other hand, Solana, Litecoin, and Polygon witnessed inflows of $2.7 million, $1.3 million, and $1 million, respectively. Cardano experienced a minor outflow of $0.3 million.
Coinshares notes, “Bitcoin was the main focus and saw outflows of $630 million, but recent negative sentiment has seen investors not contribute to short positions as short Bitcoin also saw outflows of $1.2 million. Ethereum could not escape the negative atmosphere, seeing an outflow of $58 million. While a number of altcoins have seen inflows following recent price weakness, the most notable are Solana, Litecoin, and Polygon at $2.7 million, $1.3 million, and $1 million, respectively.”
In terms of regional fund inflows and outflows, the United States led with an outflow of $475 million, followed by Canada with $109.3 million and Germany with $23.8 million. However, Switzerland experienced an inflow of $38.9 million.
It is important to note that this article does not provide investment advice. If you wish to invest in over 300 cryptocurrencies, you can register with Binance exchange using this link for a 20% commission discount. For exclusive news, analytics, and on-chain data, follow our Telegram and Twitter accounts.
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