Last week’s crypto market saw a huge turnaround. After five weeks of investors pulling their money out, a whopping $644 million flowed into crypto investment products. This is a big deal, especially since it’s the first sustained inflow in over a month.
Bitcoin’s Big Comeback
Bitcoin was the star of the show, attracting a massive $724 million in new investments. This is a significant reversal after five weeks of losses totaling $5.4 billion. Interestingly, even short Bitcoin products (which bet against
Bitcoin’s price) saw less activity, suggesting fewer investors expect Bitcoin to drop.
Ethereum and Other Altcoins: A Mixed Bag
While Bitcoin soared, the altcoin market was more mixed. Ethereum, the second-largest cryptocurrency, experienced the biggest outflow, losing $86 million. Other altcoins like Sui, Polkadot, Tron, and Algorand also saw investors pulling out money. However, Solana bucked the trend, attracting $6.4 million in investment. Polygon and Chainlink also saw modest gains.
Where the Money Came From
Most of the new investment ($632 million) came from the United States, with smaller but still positive contributions from Switzerland, Germany, and Hong Kong.
Market Performance: A Bullish Start?
The positive fund flows seem to have kicked off a bullish week. Bitcoin surged by almost 5% on Monday, trading above $87,000. Even Ethereum, which has been struggling lately, saw a nice 3.3% jump in a single day and a nearly 10% increase over the past week. However, it’s important to note that both Bitcoin and Ethereum are still below their all-time highs.
