After a grueling period of record outflows, the digital asset market is showing signs of life.
Last week, digital asset investment products attracted a substantial $226 million in inflows, marking nine consecutive trading days of positive sentiment and fueling cautious optimism among investors, according to a CoinShares report.
This turnaround follows a particularly rough patch, though a minor setback occurred on Friday, with $74 million exiting the market, likely spooked by unexpectedly high US core personal consumption expenditure (PCE) data that could influence the Federal Reserve’s interest rate decisions.
Bitcoin (BTC) remains the undisputed king of crypto assets, pulling in a commanding $195 million in inflows.
This cements its position as the go-to digital asset for institutional investors seeking exposure to the crypto market.
Interestingly, short-Bitcoin products experienced their fourth consecutive week of outflows, totaling $2.5 million, suggesting that bearish sentiment towards Bitcoin is waning as long-term optimism takes hold.
Despite this recent resurgence, total assets under management (AUM) for global Bitcoin exchange-traded products (ETPs) have fallen to $114 billion, the lowest since shortly after the US presidential election.
This figure suggests that there is still progress to be made.
Perhaps the most encouraging sign is the altcoin market finally breaking its losing streak.
Altcoins collectively secured $33 million in inflows, a welcome change after four consecutive weeks of outflows totaling a staggering $1.7 billion.
Leading this altcoin resurgence were:
Ethereum (ETH): $14.5 million
Solana (SOL): $7.8 million
XRP: $4.8 million
Sui (SUI): $4.0 million
This marks the first week in over a month that altcoins have seen positive flows, indicating renewed investor confidence in Layer-1 ecosystems and payment-focused tokens.
Across the Globe: Where is the Crypto Money Flowing?
The positive trend was not confined to a single region; major players across the globe contributed to the inflows:
United States: $204 million
Switzerland: $14.7 million
Germany: $9.2 million
Minor outflows were registered in:
Hong Kong: $2.1 million
Brazil: $1.3 million
Navigating macroeconomic uncertainty
The recent inflows offer a glimmer of hope that investor sentiment is turning cautiously optimistic.
However, macroeconomic headwinds, particularly inflation data and Federal Reserve policy, continue to cast a shadow over the short-term outlook.
If this positive momentum can be sustained, altcoins could extend their recovery, and Bitcoin could establish a stable position above current levels.
A sustained recovery would indicate the continued strength of institutional interest in the overall digital asset class.
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