Crypto funds have not been phased by geopolitical risks in the weeks since Russia invaded Ukraine. CoinShares reports that through last week, investors added to their positions in crypto funds.
Investors remain supportive of crypto
In its latest Digital Asset Fund Flows Weekly Report, CoinShares revealed that crypto funds saw inflows of $127 million in the last seven days. This is an uptick from the previous week.
The asset manager designated that the streak of inflows pointed to institutional investors remaining bullish on crypto, ignoring market sell-offs that have been caused by geopolitical events.
Digital asset investment products saw inflows totaling US$127m last week… suggesting investors remain supportive of digital assets despite the recent geopolitical events prompting a sell-off in risk assets, the report noted.
However, there has been an emerging trend of contrasting sentiments in Europe and North America, the report added. For a second week in a row, positive sentiment was centered in North America. The region recorded inflows totaling $151 million versus outflows in Europe totaling $24 million.
Bitcoin saw the lion’s share of these inflows. The benchmark cryptocurrency record inflows totaling $95 million, the largest single weekly inflow since early December 2021. Bitcoin has also been on a seven-week run of inflows.
Ethereum also had a remarkable week, with inflows reaching $25 million, the largest in 13 weeks. Other altcoins that saw inflows were Litecoin ($0.4 million), Cardano ($0.9 million), and XRP ($0.4 million). Meanwhile, Solana, Polkadot, and Binance saw outflows of $1.7 million, $0.9 million, and $0.4 million respectively.
Crypto market price action leaves investors uncertain
The past week has been filled with mixed price action in the crypto market. Bitcoin has traded with wild volatility, down about 5.08% in the last seven days with over $2,000 wiped off its value.
While the benchmark cryptocurrency is currently trading at about $39,000, its price has ranged from a high of $44,950 to a low of $37,699 in the past week. The rest of the crypto market has had similar turbulence in price action that has seemed to defy prediction.
However, market analysts are speculating that Bitcoin’s current price action points to a possible breakout to higher prices. On-chain chartist, “Decodejar,” speculates that the market is most likely in the that the market is in a late-cycle correction and not in a bear market.
Overall I think we are more likely to be at the end of a late-cycle correction, than the beginning of a bear market.
Have a great week guys.
— Steve ⚡ (@decodejar) March 7, 2022
Powered by WPeMatico