Despite Bitcoin outflows comprising 85% of total outflows, XRP, Solana, and Cardano continue to attract investors. These cryptocurrencies have witnessed inflows amid significant corrections. The negative sentiment primarily stems from U.S. investors due to a strict regulatory environment.
Last week, digital asset investment products experienced outflows of $54 million, with Bitcoin accounting for a $45 million outflow. Short-bitcoin also saw outflows of $3.8 million but remains a popular investment product with month-to-date inflows of $12 million. Ethereum recorded outflows of $4.8 million, despite strong investment fundamentals and high demand for staking yield. Other altcoins like BNB and Polygon (MATIC) saw minor outflows.
However, Solana, Cardano, and XRP attracted investors with inflows of $0.7 million, $0.43 million, and $0.13 million, respectively. These cryptocurrencies saw price increases of 11%, 5%, and 7% over the week.
The strict regulatory ecosystem in the U.S. has negatively impacted investor sentiment. The SEC and the U.S. government’s anti-crypto stance have harmed crypto investors, creating a contrast to investor protection.
Bitcoin’s price has rebounded, rising over 2% in the last 24 hours and currently trading at $27,281. The trading volume has also increased by 70% in the past 24 hours, indicating trader interest. Ethereum’s price is at $1663, up 2% in the past 24 hours, with a significant rise in trading volume.