Over the past week, there has been a significant outflow of funds from various crypto investment funds, including those holding Bitcoin and Ethereum. This caused some concern among investors, but a few altcoins, such as Solana, Cardano, and XRP, bucked the trend and saw unexpected gains.
Bitcoin experiences significant outflows
Bitcoin, the world’s largest cryptocurrency, saw the largest outflow. In fact, around 85% of the capital that left crypto funds over the past week can be attributed to Bitcoin alone. That’s a whopping $45 million in just one week.
This leak occurred at a time when Bitcoin is trying to regain its lost value. At the start of the week, Bitcoin was trading slightly above $25,000. However, it has since climbed above $26,000. At the time of writing, Bitcoin is trading at $27,100, a remarkable 8.3% increase over the past six days.
Ethereum is fighting a similar battle
Ethereum (ETH), the second largest cryptocurrency, has also seen some outflows, although it is generally favored by investors. ETH funds lost $4.8 million last week.
Other major cryptocurrencies, such as Binance Coin (BNB) and Polygon (MATIC), have also seen some drawdowns, but not to the same extent as Bitcoin and Ethereum.
Read more: Bitcoin and Altcoins Set to Rise in October, Analysts Predict
What is the reason for the cash outflows?
In eight of the last nine weeks, more money has flowed out of crypto funds than into them. This phenomenon has spread beyond the United States and has also manifested itself in other countries such as Germany, Canada and Sweden.
There are several possible reasons for the recent crypto fund outflows. One possibility is that investors become more cautious about the crypto market. The crypto market has been volatile in recent months and some investors may be waiting for the market to stabilize before investing more money.
Another possibility is that investors move their money into other asset classes, such as stocks or bonds. The stock market has performed well in recent months and some investors might see it as a more attractive investment than crypto.
The stars of the show – Solana, Cardano and XRP
While many cryptocurrencies are experiencing capital outflows, Solana, Cardano and XRP have managed to attract new investments. Solana attracted $700,000 in new funding last week, followed by Cardano with $400,000 and XRP with $100,000.
Also Read: Crypto Prices Will Skyrocket in 2024, Solana Has the Highest Potential: Raoul Pal
Solana’s trading volume also jumped 42% last week, from $754 million to $1 billion. This demonstrates the growing interest in Solana among investors. Solana and Cardano have outperformed XRP over the past 24 hours. Solana saw a 5.5% rise, while Cardano saw a 2.8% rise. On the other hand, XRP only managed to increase by 1%.
Over the past week, there has been a significant outflow of funds from various crypto investment funds, including those holding Bitcoin and Ethereum. This caused some concern among investors, but a few altcoins, such as Solana, Cardano, and XRP, bucked the trend and saw unexpected gains.
Bitcoin experiences significant outflows
Bitcoin, the world’s largest cryptocurrency, saw the largest outflow. In fact, around 85% of the capital that left crypto funds over the past week can be attributed to Bitcoin alone. That’s a whopping $45 million in just one week.
This leak occurred at a time when Bitcoin is trying to regain its lost value. At the start of the week, Bitcoin was trading slightly above $25,000. However, it has since climbed above $26,000. At the time of writing, Bitcoin is trading at $27,100, a remarkable 8.3% increase over the past six days.
Ethereum is fighting a similar battle
Ethereum (ETH), the second largest cryptocurrency, has also seen some outflows, although it is generally favored by investors. ETH funds lost $4.8 million last week.
Other major cryptocurrencies, such as Binance Coin (BNB) and Polygon (MATIC), have also seen some drawdowns, but not to the same extent as Bitcoin and Ethereum.
Read more: Bitcoin and Altcoins Set to Rise in October, Analysts Predict
What is the reason for the cash outflows?
In eight of the last nine weeks, more money has flowed out of crypto funds than into them. This phenomenon has spread beyond the United States and has also manifested itself in other countries such as Germany, Canada and Sweden.
There are several possible reasons for the recent crypto fund outflows. One possibility is that investors become more cautious about the crypto market. The crypto market has been volatile in recent months and some investors may be waiting for the market to stabilize before investing more money.
Another possibility is that investors move their money into other asset classes, such as stocks or bonds. The stock market has performed well in recent months and some investors might see it as a more attractive investment than crypto.
The stars of the show – Solana, Cardano and XRP
While many cryptocurrencies are experiencing capital outflows, Solana, Cardano and XRP have managed to attract new investments. Solana attracted $700,000 in new funding last week, followed by Cardano with $400,000 and XRP with $100,000.
Also Read: Crypto Prices Will Skyrocket in 2024, Solana Has the Highest Potential: Raoul Pal
Solana’s trading volume also jumped 42% last week, from $754 million to $1 billion. This demonstrates the growing interest in Solana among investors. Solana and Cardano have outperformed XRP over the past 24 hours. Solana saw a 5.5% rise, while Cardano saw a 2.8% rise. On the other hand, XRP only managed to increase by 1%.
