BTC Bleeds, XRP Shines: Altcoins Attract Fresh Capital Amid Bitcoin Outflows
Digital asset investment products are beginning to show early signs of stability, despite surging Bitcoin outflows. Even as the broader crypto market continues to face price pressure, altcoins are showing a renewed ray of optimism.
According to CoinShares’ latest weekly report, total outflows dropped sharply to $187 million last week, indicating that the pace of selling is slowing. While market sentiment remains cautious with Bitcoin outflows surging, the reduced outflows suggest investors may be becoming less aggressive in pulling capital out.
Bitcoin remained at the centre of negative sentiment, recording the largest share of weekly outflows. However, the trend was not uniform across the market. Several altcoins, led by XRP, attracted fresh inflows, highlighting a gradual shift in investor interest. This divergence, combined with rising trading volumes and selective regional inflows, points to the possibility that the market could be approaching a near-term bottom.
Altcoins Gain Momentum as Bitcoin Outflows Continue
The latest CoinShares report underscores the shifting investor sentiment in the crypto industry. Over the past week, digital asset investment products saw a total outflow of $187 million, with Bitcoin leading the charge.
What is more interesting is the investors’ rising attention to altcoins. While Bitcoin outflows surged, altcoins saw significant inflows, with tokens like XRP at the front. This came even as the crypto prices remain under pressure, suggesting that selling activity is starting to ease.
As noted by CoinShares, last week’s fund flows underscore the change in investor sentiment. Usually, fund flows follow price movements. But here, the movement is not in correlation with the price action. Thus, the shifts in the speed of inflows and outflows provide a clear picture of investor sentiment. The platform underscores that the recent slowdown in outflows could be an early sign that the market is nearing a short-term bottom.
Notably, Bitcoin remained the biggest source of negative sentiment. It recorded weekly outflows of $264.4 million. This pushed the total Bitcoin outflows for the year to $984 million. Short Bitcoin products also saw $11.6 million in outflows, showing that fewer investors are now betting on further price declines.
Meanwhile, several altcoins continued to attract fresh money. XRP stood out the most, pulling in $63.1 million in weekly outflows and taking its year-to-date total to $109 million. This makes XRP the top-performing asset in terms of fund flows so far this year. Solana and Ethereum also saw steady inflows of $8.2 million and $5.3 million, respectively. Multi-asset investment products added another $9.3 million.
It is worth noting that the investment flows were not the same across all regions. Some European countries showed strong activity, with Germany seeing inflows of $87.1 million and Switzerland adding $30.1 million. Outside Europe, Canada and Brazil also recorded gains, attracting $21.4 million and $16.7 million, respectively.
Crypto Market Still in Red
Despite the slowing fund outflows, the crypto market is still under growing pressure. Although the market had shown signs of resilience and growth on Saturday, it has once again sunk into the negative zone. As of press time, the total market cap is at $2.35 trillion, down 1.72%.
The weekly Bitcoin outflows come amid the cryptocurrency’s downturn. Over the past few weeks, the coin has been under increased pressure, with its price now at $68.6k. Altcoins are also in the red zone, with XRP down by 3.66% in a week, despite the inflows.
