Home Business News BTC and ETH tumble: Watch out for Altcoins shining

BTC and ETH tumble: Watch out for Altcoins shining

by LLB Finance Reporter
19th Dec 23 9:21 am

Last week saw modest outflows of $16 million in digital asset investment products, marking the conclusion of an 11-week buying streak.

Despite this, trading activities remained robust, exceeding the annual average and reaching $3.6 billion weekly. Saqib Iqbal, an analyst at Trading.Biz, analyzes current scenarios in the crypto market.

  • The outflows from Bitcoin and Ethereum resulted in a pause of recent bullishness.
  • Four Altcoins benefit from the outflows.
  • Blockchain stocks rise as investors shift their focus from the crypto market to crypto-based stocks.

The Bitcoin rally has paused around $44,000 and the coin is struggling to hold onto gains. Same is the case with Ethereum as well. The downtick move is attributed to the outflows from these major coins.

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There were notable outflows of $18 million in the United States, while Germany reported smaller outflows of $10 million. In contrast, Canada and Switzerland demonstrated resilience with inflows of $6.9 million and $9.1 million, respectively.

These varied regional flows suggest that the recent shift is driven more by profit-taking than a fundamental change in sentiment towards the asset class.

Weekly flows data (Source: CoinShares)

Bitcoin experienced outflows of $33 million, with short-focused Bitcoin seeing minor outflows of $300 thousand. Ethereum and Avalanche faced modest outflows of $4.4 million and $1 million, respectively.

However, altcoins bucked the trend, attracting inflows of $21 million. Notable beneficiaries include Solana ($10.6 million), Cardano ($3 million), XRP ($2.7 million), and LINK ($2 million). Hence, these four altcoins present a short-term bullish potential.

Blockchain-focused stocks continued to attract positive sentiment, with significant inflows totaling $122 million last week. This marks the culmination of a remarkable 9-week run, accumulating $294 million—the largest sustained entry on record.

Despite minor outflows, the resilience of Blockchain-focused stocks and the appeal of selected altcoins and blockchain stocks highlight the nuanced dynamics in the digital asset landscape. Investors appear to strategically evaluate profit-making opportunities while actively engaging with the evolving market.

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