Crypto investment products witnessed another surge last week, with 85% of the gains occurring in Bitcoin. Despite the market corrections, cryptocurrencies like XRP, Solana, and Cardano continue to attract investments. Research suggests that investors from the US can be attributed as the primary reason for the negative sentiment due to stringent regulatory pressure.
Current State of Cryptocurrencies
According to the latest data from CoinShares on September 18, there was a significant outflow of $54 million from cryptocurrencies last week. Bitcoin accounted for 85% of the total outflow, reflecting a $45 million decrease. Short-term investors witnessed an outflow of $3.8 million, but with a monthly inflow of $12 million, Bitcoin remains the most favored crypto investment. This situation arose as the US SEC postponed its decision on spot Bitcoin ETFs to mid-October.
Ethereum, on the other hand, experienced an outflow of $4.8 million despite its strong investment fundamentals and staking returns. Other altcoins like BNB and Polygon (MATIC) also recorded minor outflows.
However, the entry of $700,000, $430,000, and $130,000 in Solana, Cardano, and XRP, respectively, indicates that investor interest continues to grow. Solana, Cardano, and XRP witnessed price increases of 11%, 5%, and 7% respectively within a week. The strict regulatory pressure in the US continues to influence investor behavior. The anti-crypto stance of the SEC and the US government continues to harm crypto investors instead of protecting them.
Will Bitcoin Rise?
BTC price has increased by 2% in the past 24 hours and is currently trading at $27,200. The lowest and highest levels in the past 24 hours were $26,415 and $27,268, respectively. Additionally, trading volume has increased by 70% in the past 24 hours, indicating growing interest from investors.
This situation has led to speculation that the increased interest may be a result of Bitcoin ending the week at a higher level. ETH price has also increased by 2% in the past 24 hours and is currently trading at $1663. Furthermore, there has been a significant increase in trading volume in the past 24 hours.
