Cryptocurrency assets saw a positive change in their flow for the first time in six weeks, according to the latest report from CoinShares, a European digital assets management firm. The report highlighted that Bitcoin (BTC) was the biggest gainer during this period, with inflows amounting to $20.4 million. Solana (SOL) followed closely behind with $5 million, making it the only other asset to demonstrate inflows. CoinShares noted that this marks the 27th week of inflows for Solana, solidifying its position as the most popular altcoin in the industry for this year.
In contrast to Bitcoin’s positive performance, Ether (ETH) experienced outflows worth $1.5 million. This represents the seventh consecutive week of outflows for Ether and reinforces its reputation as the least favored altcoin. Other altcoins, including XRP, also witnessed negative or minimal inflows, despite XRP surpassing Solana in inflows during the previous week. CoinShares analysts identified multiple factors contributing to the lack of movement in altcoins alongside Bitcoin’s breakaway momentum.
Factors Influencing Inflows
CoinShares attributed the recent inflows to a combination of positive price momentum, concerns regarding US government debt prices, and the ongoing negotiations over government funding. The uncertainty surrounding the funding bill led to fears of a potential government shutdown on October 2. However, Senate leaders managed to reach an agreement, passing a stopgap measure that ensures funding until November 17. The resolution of the current funding issue and the long-term funding of the government remain uncertain.
The report also highlighted the geographical distribution of cryptocurrency asset inflows. Germany, Canada, and Switzerland led the way with inflows amounting to $17.7 million, $17.2 million, and $7.4 million, respectively. Australia and France, on the other hand, had minimal inflows, with only $100,000 for Australia and no inflows for France. The United States recorded significant outflows of $18.5 million, followed by Sweden and Brazil with outflows of $1.8 million and $900,000, respectively.
Overall, the recent report from CoinShares indicates a positive turn for cryptocurrency assets, with Bitcoin leading the way in terms of inflows. However, the outflows for Ether and the lack of movement in other altcoins highlight the dominance of Bitcoin in the market. The geopolitical factors, such as the uncertainty surrounding US government funding, also play a role in the movement of cryptocurrency assets. The future of altcoins and the stability of the market will continue to be influenced by various external factors.
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