Despite $87 Million In Weekly Inflows Into Crypto Assets, The Market Remains Bearish
Even as the market continued to show signals of bearishness, CoinShares revealed that crypto asset investment products saw inflows of $87 million in the previous week. The report found that the year-to-date crypto inflows surpassed the $500M mark with positive flows for the week ending May 27.
However, in the week prior, CoinShares had reported outflows of $141 million amid broader market weakness.
Bitcoin records positive flows
On the asset-specific front, now Bitcoin saw inflows of $69 million, bringing year-to-date inflows to $369 million. This comes soon after a heavy outflow of close to $154 million in the previous week for the top-traded cryptocurrency
Given Bitcoin’s seven-day low stands under $28,500. That said, as Bitcoin slid under the crucial level of $30,000 on several occasions, the total assets under management (AuM) are now at their lowest point since July 2021, the report highlighted.
However, Bitcoin has now risen almost 8% in the last 24 hours, surpassing the price level of $31,700. But despite the recent recovery, crypto analyst CryptoCapo noted opined it is not sustainable in the short run of one to three months.
In addition, Analyst James Butterfill also remarked:
“Short Bitcoin saw inflows totaling US$1.8m last week suggesting the market hasn’t completely shrugged off its bearish undertones.”
Ethereum market witnesses negative flows in contrast to other alts
On the altcoin front, all major assets barring Ethereum clocked positive flows for the week. While Algorand saw record inflows of $20 million, Ethereum’s weekly flows were in the red at $11.6 million and recorded net year-to-date outflows of $250 million.
However, Hayden Hughes, chief executive of social media trading platform Alpha Impact stated to Bloomberg on Monday, “We’re seeing heavy buying of Ether and several altcoins, and these patterns mirror what we saw in the July 2021 bear market bottom and the January 2022 local bottom.”
Altcoins like Solana and TRON brought inflows of $4.8 million, $1.8 million, and $0.4 million respectively.
Meanwhile, the cumulative crypto market cap stands at $1.37 trillion at the time of press.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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