Crypto inflows experienced a record surge last week, reaching a staggering $3.85 billion. The positive flows into digital asset investment products surpassed the previous record set just a few weeks ago.
This monumental activity has driven total year-to-date (YTD) inflows to $41 billion.
Bitcoin Leads as Crypto Inflows Near $4 Billion
Bitcoin (BTC) led the charge, accounting for $2.5 billion of last week’s inflows. This brings its YTD total to an impressive $36.5 billion. The sustained bullish momentum has investors projecting further gains, with some analysts eyeing $100,000 as a viable target in this cycle.
Bitcoin shorts saw inflows of $6.2 million, a trend historically seen after sharp price increases. According to James Butterfill in CoinShares’ latest report, this highlights cautious investor sentiment, with many hesitant to bet against Bitcoin’s current strength.
Crypto Inflows Last Week. Fonte: CoinShares
Ethereum leads inflows as altcoins face challenges in institutional market
Meanwhile, Ethereum has taken the spotlight with its largest weekly inflows on record, totaling $1.2 billion. This dwarfs the excitement seen during the launch of Ethereum exchange-traded funds (ETFs) in July. The significant inflows highlight growing confidence in Ethereum’s long-term potential, especially as the blockchain cements its role in decentralized finance (DeFi) and NFT (non-fungible token) ecosystems.
However, Ethereum’s success appears to be coming at the expense of competitors like Solana (SOL), which saw $14 million in outflows last week. This marks the second consecutive week of declines for Solana, signaling a shift in investor sentiment towards altcoins.
Institutional players like BlackRock, which recently postponed plans for altcoin ETFs in favor of Bitcoin and Ethereum-centric products, have further reinforced the market’s preference for these assets. The record inflows reflect a broader trend of institutional interest in digital assets.
Companies like MicroStrategy and BlackRock have been at the forefront of this movement. For the latter, its spot Bitcoin ETF offering continues to serve as a major catalyst for market optimism.
With Bitcoin and Ethereum commanding the bulk of inflows, questions remain about the future of altcoins in an increasingly competitive market. Solana’s outflows could signal broader challenges for smaller blockchain ecosystems, especially as institutional money flocks to the market giants.
Investor Sentiment: Profits and Strategies
Elsewhere, a recent survey by ReviewExchanges sheds light on how Bitcoin’s rise to $100,000 has impacted crypto investors in the US. A survey of 719 investors revealed mixed emotions, strategies, and expectations following the milestone.
A significant 48% of respondents admitted to missing out on major gains during Bitcoin’s bull run and regret not having acted sooner. Another 31% believe it’s not too late to invest. Meanwhile, only 15% reported being able to time their investments to achieve financial goals, while 6% revealed they had no interest in Bitcoin during its bull run.
The survey also showed that 83% of investors made less than $10,000 from the rally, with only 2% making more than $1 million. This reflects the rarity of substantial gains and highlights the importance of timing and strategy.
Research on the Impact of Bitcoin Price Hitting $100,000 on Investors. Source: Review Exchanges
The survey also found that 72% of participants see cryptocurrency as a great future investment. While 43% expressed increased confidence in the market, 29% remained cautiously optimistic due to inherent risks. Meanwhile, 7% reported low confidence, reflecting concerns about volatility.
The majority of respondents, 67%, indicated that they are holding their assets for long-term gains, while 18% are diversifying their portfolios. Only 10% opted to cash out entirely, and 5% reinvested profits into altcoins, reflecting a growing interest in blockchain innovation beyond Bitcoin.
The article Crypto inflows approach $4 billion; understand was first seen on BeInCrypto Brasil.
