The cryptocurrency market saw total net inflows of $130 million for the first time in five weeks. Despite this cautious optimism, overall investor participation is declining and regulators’ stance is creating uncertainty. While there are opposite flows in Bitcoin and Ethereum, investor interest varies in altcoins such as Polkadot (DOT coin) and Solana.
Positive atmosphere in cryptocurrencies
After a long time, there has finally been a positive development in the cryptocurrency market. After five weeks of net outflows, crypto asset investment funds recorded an inflow of $130 million for the first time. The majority of these entries (85%) came from the United States. This is supported by the fact that Grayscale, one of the largest players in the cryptocurrency market, has achieved its lowest weekly output since January.
However, despite this optimism, a cautious approach still prevails in the market. One key reason for this is that regulators in the United States have been silent on non-Bitcoin exchange-traded fund (ETF) applications. This silence has increased speculation that the approval process, especially for spot Ethereum ETFs, is not imminent. This situation is also reflected in the $14 million Ethereum ETF outflows seen last week.
DOT coin and others logged in
When we look at general market movements, the picture becomes a little more complicated. ETP transaction volumes remained at $8 billion this week, compared to an average of $17 billion in April. This decline reveals that ETP investors are currently showing less participation in the crypto ecosystem. They account for 22% of total volumes on global trusted exchanges, compared to 31% last month.
As a result, the altcoins that experienced entry and exit are as follows:
- Bitcoin (BTC): $144 million entry
- Ethereum (ETH): $14.4 million outflow
- Short Bitcoin (Short BTC): $5.1 million outflow
- Litecoin (LTC): $0.1 million entry
- Polkadot (DOT): $1.2 million entry
- Solana (SOL): $5.9 million entry
The weak trend in BTC has ended, it has just begun in ETH
Although Bitcoin (BTC) saw inflows of $144 million following the weak run in recent weeks, it was offset by outflows of $5.1 million from ETPs investing in short positions. This situation shows the uncertainty in investors’ perspective on Bitcoin. Ethereum (ETH), on the other hand, saw an outflow of $14.4 million last week, after breaking its 7-week outflow series and experiencing an inflow of $19 million. This could be interpreted as a result of regulators’ delays regarding spot Ethereum ETFs.
As a result, although the cryptocurrency market is in an atmosphere of cautious optimism, the decline in the overall participation of investors and the attitude of regulators creates uncertainty. In this environment of uncertainty, the opposite flows in Bitcoin and Ethereum and the performance of alternative projects such as Polkadot will be an important topic for investors to follow.
To be informed about the latest developments, follow us twitter‘in, Facebookin And InstagramFollow on and Telegram And YouTube Join our channel!