CoinShares Crypto Inflows of 441m Indicate Significant Market Activity
Investors in the cryptocurrency market took advantage of the recent price drop to invest in blockchain token-based funds, according to a report by CoinShares. The report reveals that a total of $441 million was invested in digital asset investment vehicles last week, following a market downturn and subsequent recovery. American investors led the way, with around $384 million being invested in digital asset investment products on Wall Street. Other regions, including Hong Kong, Switzerland, and Canada, also saw modest capital inflows. Bitcoin accounted for 90% of the inflows, but investors also diversified their investments into altcoins.
The cryptocurrency industry faced negative sentiment as the overall market lost over 9% of its value last week, bringing the total market cap down to $2 trillion. Bitcoin and Ethereum also experienced a drop in value, reaching two-month lows. Bitcoin fell below $54,000 due to concerns over Mt. Gox and selling pressure in Germany, before rebounding above $58,000. Ethereum slipped below $3,000. Altcoins also experienced a decline, with the altcoin market cap dipping as much as 15% and altcoins in general seeing an 80% decline since Bitcoin’s halving.
Although there was a 4% bounce on Monday as traders sought opportunities for larger gains, the overall market sentiment remained bearish, resulting in further losses for cryptocurrencies. The “fear & greed” index for the crypto market is now at 28, its lowest level since September last year. While the total digital asset market cap initially rose by nearly 3%, it fell again due to volatility and concerns surrounding Bitcoin. Blockchain equities also continued to decline, with $556 million in outflows from mining entities and other web3 companies since the beginning of the year.
According to James Butterfill, head of research at CoinShares, Mt. Gox remains a challenge for Bitcoin, causing concerns and uncertainty in the market.
