Bitcoin drives digital asset inflows for the first time in 6 weeks: Report

October 3, 2023 admin USD COIN 0

Cryptocurrency assets experienced inflows for the first time in six weeks during the week of Sep. 22-28, according to the latest Digital Asset Fund Flows Weekly Report from European digital assets management firm CoinShares.

Bitcoin was the biggest gainer with inflows in the amount of $20.4 million for the week.

Solana took second with $5 million as the only other asset to show inflows. Per CoinShares, this is its 27th week of inflows with only four weeks of outflows for 2023, making it “the most loved altcoin this year.”

On the flip side, Ethereum experiences outflows in the amount of $1.5 million. This marks its seventh consecutive week of outflows and, according to CoinShares, solidifies its status as “the least loved altcoin.”

Related: CoinShares says US not lagging in crypto adoption and regulation

Flows for other altcoins, including XRP after it saw more inflows than Solana in the previous week, were negative and minimal.

CoinShares analysts attributed the the lack of altcoin movement alongside Bitcoin’s trend-breaking momentum to a combination of factors:

“We believe the inflows are a reaction to a combination of positive price momentum, fears over US government debt prices and the recent quagmire over government funding.”

The quagmire referenced by CoinShares involves the ongoing negotiations over U.S. government funding. Earlier in the previous week’s cycle, fears over a republican-wrought stalemate led to predictions that the U.S. government would shut down on Oct. 2. However, a last-minute effort by senate leaders allowed for the passage of a stopgap that ensures funding through November 17. Whether congress and the president can come to terms to fund the government beyond the current measure’s expiration remains to be seen.

Geographically, Germany, Canada, and Switzerland lead the charge for the week with inflows amounting to $17.7 million, $17.2 million, and $7.4 million respectively. Australia and France held the line, metaphorically speaking, with $0.1 million for the former and a nil push for the latter.

The United States played foil to Europe and Canada’s inflows, registering $18.5 million in outflows with Sweden and Brazil following suit at $1.8 and $0.9 outgoing respectively.