In the week ending July 15, cryptocurrency funds lost more than $423 million, according to information from CoinShares. Since the beginning of July, there have been outflows totaling $1.2 billion for the third week in a row.
Bitcoin funds suffered the largest outflows, with $396 million in redemptions. XRP funds received $6 million in inflows, while ether funds received $24 million.
The withdrawals from bitcoin funds coincide with a recent decline in the price of bitcoin. Since hitting an all-time high of $68,990 in November 2021, the price of bitcoin has decreased by more than 30%.
The withdrawal of money from bitcoin funds may indicate that investors are becoming less risk-averse. Numerous causes, such as the current conflict in Ukraine, rising prices, and the potential for tighter cryptocurrency restrictions, could be to blame for this.
Yet ether and XRP funds experienced inflows despite the outflows from bitcoin funds. This can indicate that investors are seeking for more alternative cryptocurrencies to invest in. Cryptocurrencies other than bitcoin are known as altcoins.
By market capitalization, Ether is the second-largest cryptocurrency. The Ethereum blockchain, a platform for decentralized apps, uses it as its native currency.
XRP ranks third in terms of market capitalization among all cryptocurrencies. It is the default currency of the XRP ledger, a payment network that enables speedy and inexpensive money transfers.
The investments being made into ether and XRP funds may indicate that investors are looking for cryptocurrencies other than bitcoin that have more practical uses. While ether and XRP can be used to make payments for goods and services, bitcoin is mostly utilized as a store of value.
It’s critical to remember that the bitcoin market is unstable and that past success does not guarantee future success. Before making an investment in any cryptocurrency, investors should conduct their own research.
Additional thoughts on the most recent withdrawals of bitcoin funds are provided below:
The withdrawals can indicate a shift in investor aversion to risk. Numerous causes, such as the current conflict in Ukraine, rising prices, and the potential for tighter cryptocurrency restrictions, could be to blame for this.
The withdrawals can also indicate that investors are seeking for additional altcoins to invest in. Cryptocurrencies other than bitcoin are known as altcoins.
Two of the most well-liked alternative currencies are ether and XRP. They are more useful than bitcoin and may appeal to investors looking for cryptocurrencies that can be used to make purchases of products and services.
It’s critical to remember that the bitcoin market is unstable and that past success does not guarantee future success. Investors ought to conduct their own research.