- Bitcoin inflows surge by $724M, signaling renewed investor confidence and market recovery.
- US leads crypto inflows with $632M as global optimism boosts digital asset investments.
- Ethereum outflows hit $86M, while Solana gains $6.4M amid mixed altcoin sentiment.
The crypto market is showing renewed optimism as digital asset investment products experienced a significant reversal last week, ending a five-week period of net outflows. This shift resulted in total inflows of $644 million, suggesting a notable improvement in market sentiment.
As per CoinShares Research data, total assets under management have increased by 6.3% since the low point on March 10th. What’s particularly noteworthy is that inflows were recorded every single day last week, a stark contrast to the preceding 17 consecutive days of outflows.
This sudden turnaround clearly indicates growing confidence in digital assets and hints at a potential recovery in the market.
Where is the Renewed Confidence in Crypto Coming From?
The United States was the primary source of this renewed investment, contributing a substantial $632 million to the overall total. This highlights the significant role that US-based investors are playing in driving the current market rebound.
Related: Crypto Market’s “Disbelief” Phase: Analyst Predicts Imminent Reversal
However, the positive sentiment wasn’t limited to the US alone. Switzerland, Germany, and Hong Kong also reported inflows of $15.9 million, $13.9 million, and $1.2 million, respectively. This suggests that the improved confidence in digital assets is widespread, reflecting global interest.
Bitcoin Leading the Crypto Market Recovery as Short Positions Decline
Bitcoin was at the forefront of this recovery, attracting a significant $724 million in inflows after enduring five consecutive weeks of persistent outflows. These previous outflows had amounted to a cumulative $5.4 billion, indicating substantial investor losses.
However, the recent influx of funds marks a decisive and positive change in investor sentiment towards Bitcoin.
Meanwhile, investment products focused on shorting Bitcoin experienced outflows of $7.1 million. This marks the third consecutive week of outflows for these products, suggesting that investors are increasingly less inclined to bet against Bitcoin as confidence in its price improves.
What’s the Sentiment Like for Altcoins Right Now?
Sentiment in the altcoin space remained mixed, reflecting divergent market views. Ethereum saw the largest outflows among altcoins, with $86 million leaving the asset last week. Several other altcoins also experienced notable outflows, including Sui and Polkadot, which each saw $1.3 million in outflows, as well as Tron and Algorand, which lost $0.95 million and $0.82 million, respectively.
However, some altcoins defied this trend, indicating continued investor interest in specific assets. Solana, for instance, recorded inflows of $6.4 million, suggesting renewed demand.
Related: Altcoin Season May Be Near: Key Technical Signal Emerges
Additionally, Polygon and Chainlink saw smaller gains of $0.4 million and $0.2 million, respectively. These inflows highlight targeted optimism in particular projects despite a broader sense of uncertainty within the altcoin market.
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