- September 26, 2023
- Posted by: [email protected]
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A recent report from CoinShares on the crypto market flow indicates a shifting sentiment among traders, with increased confidence in assets like XRP and Solana. However, the broader cryptocurrency market saw its sixth consecutive week of outflows, raising questions about the overall direction of digital asset investments.
In the week ending September 24th, crypto investment products experienced outflows totaling $9 million. Notably, Bitcoin (BTC) recorded its third consecutive week of outflows, with $6 million exiting the market. Short positions on Bitcoin saw outflows amounting to $2.8 million. Ethereum (ETH) also continued its trend of outflows, marking its sixth consecutive week with $2.2 million flowing out during the past week.
While Bitcoin and Ethereum faced these ongoing outflows, some altcoins, especially XRP and Solana, garnered increasing trust from traders. XRP and Solana witnessed net inflows of $0.66 million and $0.31 million, respectively. This trend indicates that investors are becoming more selective in the altcoin space, with a growing preference for assets like XRP and Solana.
The report uncovered a notable divergence in sentiment between European and U.S.-based traders, largely influenced by regional activities. European crypto investment products saw $16 million in inflows, while U.S.-based products experienced $14 million in outflows. This regional disparity is attributed to uncertainties surrounding crypto regulations and recent actions taken by the U.S. Securities and Exchange Commission (SEC) against cryptocurrency companies.
The report also highlighted a decline in weekly trading volumes, which dropped below $820 million. This figure falls significantly short of the 2023 average of $1.16 billion. These lower trading volumes suggest a prevailing bearish sentiment in the market.
As depicted in the CoinShares report, the cryptocurrency market currently faces downward pressure. Bitcoin is struggling to break free from the key resistance level of $27,000 and has remained relatively stagnant since the Federal Open Market Committee (FOMC) meeting, where the Federal Reserve decided not to raise interest rates for the quarter. Additionally, the delay in Mt. Gox creditors’ payouts had an impact on last week’s price action, but Bitcoin seemed largely unaffected by these significant events.
In this dynamic crypto landscape, investors and traders continue to monitor market developments closely, looking for signs of a potential shift in sentiment that could alter the course of the digital asset market. As XRP and Solana gain momentum, it remains to be seen how these trends will evolve in the coming weeks and whether they will influence broader market sentiment.
