Over the past week, there has been a significant outflow of funds from various crypto investment funds, including those holding Bitcoin and Ethereum. This has caused some concern among investors, but a few altcoins, such as Solana, Cardano, and XRP, have bucked the trend and experienced unexpected gains.
Bitcoin Sees Major Outflows
Bitcoin, the world’s largest cryptocurrency, has seen the biggest outflow of funds. In fact, approximately 85% of the capital that has left crypto funds in the past week can be attributed to Bitcoin alone. This amounts to a staggering $45 million in just one week.
This outflow has occurred at a time when Bitcoin is trying to regain its lost value. At the beginning of the week, Bitcoin was trading slightly above $25,000. However, it has since climbed to surpass $26,000. As of this writing, Bitcoin is trading at $27,100, a remarkable increase of 8.3% over the past six days.
Ethereum is fighting a similar battle
Ethereum (ETH), the second-largest cryptocurrency, has also seen some outflows, despite being typically favored by investors. ETH funds have lost $4.8 million in the past week.
Other prominent cryptocurrencies, such as Binance Coin (BNB) and Polygon (MATIC), have also experienced some withdrawals, although not to the same extent as Bitcoin and Ethereum.
Read More: Bitcoin and Altcoins Set to Surge in October, Analysts Predict
What’s the Reason for the Outflows?
For eight of the past nine weeks, more money has exited crypto funds than flowed in. This phenomenon extended beyond the United States, manifesting itself in other countries like Germany, Canada, and Sweden as well.
There are a few possible reasons for the recent outflows from crypto funds. One possibility is that investors are becoming 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 are moving their money to other asset classes, such as stocks or bonds. The stock market has been performing well in recent months, and some investors may be seeing it as a more attractive investment than crypto.
The Stars of the Show – Solana, Cardano, and XRP
While many cryptocurrencies are experiencing outflows, Solana, Cardano, and XRP have managed to attract new investments. Solana has attracted $700,000 in new funding in the past week, followed by Cardano with $400,000 and XRP with $100,000.
Also Read: Crypto Prices to Skyrocket in 2024, Solana Has the Highest Potential: Raoul Pal
Solana’s trading volume has also surged by 42% in the past week, from $754 million to $1 billion. This demonstrates the growing interest in Solana among investors. Solana and Cardano have outperformed XRP in the past 24 hours. Solana experienced a rise of 5.5%, while Cardano saw an increase of 2.8%. In contrast, XRP only managed to go up by 1%.
