The geopolitical and macroeconomic situation in the world is putting pressure on the crypto market. Yet confidence seems to be slowly returning among investors in Bitcoin (BTC). They are cautiously investing again in Bitcoin funds.
This is different with altcoin exchange-traded funds (ETFs). There, the money continues to flow away and the losses will continue for the time being.
Bitcoin ETFs are seeing inflows again
The American Bitcoin spot funds saw money flowing in again at the beginning of the week. Yesterday, $167.1 million in new capital was added.
That is striking. In the previous two days, approximately $577 million flowed out of these funds. The new inflow therefore appears to be a cautious recovery of investor confidence.
The biggest winner was BlackRock. The asset manager’s IBIT fund single-handedly attracted $109.3 million in new capital. The only other party with a net inflow was Fidelity, which received $60.1 million.
In addition, two funds saw a small outflow. This involved products from asset managers Bitwise and Ark Invest.
The net inflow is accompanied by a slight increase in the digital currency itself. At the time of writing, Bitcoin is up 4.1 percent in the past 24 hours. This brings the price to more than $71,000.
Altcoin ETFs Keep Losing Money
While Bitcoin funds are cautiously recovering, other crypto ETFs show a very different picture. Funds linked to Ethereum (ETH), XRP and Solana (SOL) continue to lose money.
Yesterday, $51.3 million flowed out of ETH funds. This now marks the third negative day in a row. In total, these funds lost approximately $225.1 million in assets during that period.
There were also outflows from other altcoin funds. For example, XRP funds saw $18.11 million exit, while Solana funds saw another $2.48 million withdrawn. This is evident from data from SoSoValue.
Bitcoin holds strong during chaotic market day
Bitcoin’s performance has been striking in recent days. Despite the turbulent period, in which the oil price rose above 110 dollars per barrel yesterday, the digital currency remained relatively strong.
Altcoins appeared to be clearly more sensitive to geopolitical uncertainty yesterday with the large outflows. However, sentiment now seems to be turning quickly. After Donald Trump indicated that the war with Iran may end sooner than expected, optimism returned to the financial markets. The stock markets are also on the rise again.
After the positive news, the oil price made a historic move. In a short time, the price fell from more than $110 to around $85 per barrel, an exceptionally strong drop for the oil market. This provides relief to investors, who were very concerned about the possible economic consequences.
Source: https://newsbit.nl/wall-street-keert-terug-naar-bitcoin-terwijl-altcoinfondsen-geld-verliezen/
