Crypto markets breathed a sigh of relief last week as investment inflows returned after a brutal five-week outflow streak. Fuelled by renewed optimism around U.S. monetary policy, institutional investors poured back into digital assets—led overwhelmingly by Bitcoin.
$644M in Weekly Inflows Marks a Turnaround
According to CoinShares’ latest report, crypto investment products saw $644 million in net inflows, breaking a 17-day withdrawal streak. This marked a sharp reversal from the previous five weeks, which saw $5.4 billion in cumulative outflows.
The shift in sentiment is partly attributed to expectations of a more dovish stance by the U.S. Federal Reserve, which has historically influenced risk-on assets like crypto.
Bitcoin Dominates with $724M in Inflows
Bitcoin (BTC) was the clear winner, attracting $724 million in inflows and driving the market’s recovery. Bitcoin ETFs, particularly those in the U.S., played a major role in this surge.
U.S. investors led the inflow activity, contributing $632 million, while Switzerland ($15.9M), Germany ($13.9M), and Hong Kong ($1.2M) followed with smaller but positive numbers.
Ethereum and Altcoins Still Under Pressure
Despite Bitcoin’s rally, Ethereum (ETH) continued to struggle, with investment products seeing $86 million in outflows—the largest among major cryptocurrencies.
Other altcoins also faced selling pressure:
Sui (SUI) and Polkadot (DOT): $1.3 million each in outflows
Tron (TRX): $950,000 out
Algorand (ALGO): $820,000 out
This suggests investor confidence remains shaky for assets outside Bitcoin.
Solana Shines, Chainlink and Polygon See Modest Gains
Not all altcoins faced the same fate. Solana (SOL) stood out with $6.4 million in inflows, continuing to attract capital as a top Ethereum competitor. Polygon (POL) and Chainlink (LINK) also saw modest gains of $400,000 and $200,000, respectively.
The return of institutional inflows signals improving market sentiment, but the dominance of Bitcoin highlights a cautious approach from investors. Altcoins remain under scrutiny, with only a few managing to buck the trend.
