Spotlight turns to XRP and Solana while the rest of the market suffers outflows.
The cryptocurrency market recorded its sixth week of investment product outflows, reaching $9 million for the week ending September 24th.
The trend primarily impacted Bitcoin (BTC) and Ether (ETH), while altcoins like XRP and Solana (SOL) bucked the trend with inflows, according to recent data from CoinShares.
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Bitcoin has experienced outflows for three consecutive weeks, hitting $6 million over the last seven days. Alongside it, short Bitcoin positions also suffered, with $2.8 million exiting.
Ether wasn't spared either, as it marked its sixth week of outflows, totaling $2.2 million in the past week. These numbers indicate a growing bearish sentiment, particularly as Bitcoin's price struggles to surpass the crucial $27,000 resistance level.
However, the story for altcoins XRP and Solana has been considerably different. XRP saw an inflow of $0.66 million, and Solana received $0.31 million. The data suggests an increasing investor interest in these specific altcoins despite the broader market's bearish undertone.
Another interesting observation from the CoinShares report was a geographical divergence in investment behavior. While European-based crypto investment products drew in $16 million, their US counterparts faced a contrasting scenario with $14 million in outflows.
This split is primarily attributed to uncertainties around cryptocurrency regulations in the United States and the US Securities and Exchange Commission's (SEC) recent actions against crypto firms.
Trading volumes also hit below $820 million last week. This is significantly lower than the 2023 average trading volume of $1.16 billion. Moreover, external factors like the US Federal Reserve's decision to keep interest rates steady and delays in Mt. Gox creditor payouts have failed to move Bitcoin's price significantly, adding to the sluggish market activity.
The latest data from CoinShares shows a diverging landscape in cryptocurrency investments, marked by continued outflows from Bitcoin and Ether and increased inflows into altcoins like XRP and Solana. As traditional financial markets and regulatory decisions continue to influence the cryptocurrency market, it remains to be seen how these trends will evolve in the coming weeks.
