Millions Abandon Bitcoin, Yet Three Coins Remain Resilient

Significant Outflows for Crypto Funds Despite Resilient Assets

Last week saw a concerning trend in the crypto market as various crypto funds experienced significant outflows, including those holding Bitcoin. Despite this, a few assets managed to remain resilient in the face of adversity.

Digital asset investment products witnessed a decline for the fifth consecutive week, with outflows totaling $53.5 million. This brings the total aggregate outflows over the past nine weeks to almost half a billion dollars.

Market Leaders Bitcoin and Ethereum Affected

The majority of the outflows, approximately 85%, came from Bitcoin funds, resulting in a $45 million decrease in value last week. This decline for Bitcoin occurred as the cryptocurrency struggled to recover from previous losses. Throughout the week, Bitcoin’s price climbed from just over $25,000 to over $26,000 by Saturday. As of the time of writing, Bitcoin is trading at $27,117, representing an 8.3% increase over the past seven days.

Ethereum also faced outflows, totaling $4.8 million, despite its strong investment fundamentals and growing demand for its staking yield. Other notable assets such as BNB and MATIC also experienced minor outflows.

“The last two months have been especially challenging, with eight out of the previous nine weeks reporting outflows,” noted James Butterfill, the head of research at CoinShares.

Primary Catalyst for Outflows: The United States

The United States was the main contributor to the negative sentiment, accounting for 77% of the outflows. However, other regions, including Germany, Canada, and Sweden, also experienced significant outflows during the past week.

The net inflows for the year so far have plummeted to a mere $51 million following this period of outflows. This revelation is particularly startling considering the optimistic start to the year.

Silver Lining: Solana, Cardano, and XRP

Amidst the gloomy backdrop, Solana, Cardano, and XRP emerged as beacons of hope. Unlike other assets, these three saw inflows: Solana led the way with $700,000, followed by Cardano and XRP with inflows of $400,000 and $100,000, respectively.

This performance offers a glimmer of optimism in a challenging digital asset market, suggesting that there are areas of resilience and investor confidence.

Furthermore, trading volume in the crypto market surged by 42% compared to the previous week, reaching $1 billion. This increase indicates the active participation and engagement of traders in the crypto sphere.

It is worth noting that in the past 24 hours, both Solana and Cardano have seen higher profits than XRP, with Solana up by 5.5% and Cardano up by 2.8%. Meanwhile, XRP has only recorded a 1% profit over the same period.

Featured image from iStock, Chart from TradingView

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J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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