Crypto Assets See Weekly Inflows of $87M But Bearishness Still Grips the Market

CoinShares reported that crypto asset investment products saw inflows of $87 million in the past week even as the market continued to show signs of bearishness.

The report found that the year-to-date crypto inflows surpassed the $500M mark with positive flows for the week ending May 27.

However, in the week prior, CoinShares had reported outflows of $141 million amid broader market weakness.

Bitcoin records positive flows

On the asset-specific front, now Bitcoin saw inflows of $69 million, bringing year-to-date inflows to $369 million. This comes soon after a heavy outflow of close to $154 million in the previous week for the top-traded cryptocurrency

Given Bitcoin’s seven-day low stands under $28,500. That said, as Bitcoin slid under the crucial level of $30,000 on several occasions, the total assets under management (AuM) are now at their lowest point since July 2021, the report highlighted.

However, Bitcoin has now risen almost 8% in the last 24 hours on CoinGecko, surpassing the price level of $31,700. But despite the recent recovery, crypto analyst CryptoCapo noted opined it is not sustainable in the short run of one to three months.

In addition, Analyst James Butterfill also remarked, “Short Bitcoin saw inflows totaling US$1.8m last week suggesting the market hasn’t completely shrugged off its bearish undertones.”

Ethereum witnesses negative flows in contrast to other alts

On the altcoin front, all major assets barring Ethereum clocked positive flows for the week. While Algorand saw record inflows of $20 million, Ethereum’s weekly flows were in the red at $11.6 million and recorded net year-to-date outflows of $250 million.

However, Hayden Hughes, chief executive of social media trading platform Alpha Impact stated to Bloomberg on Monday, “We’re seeing heavy buying of Ether and several altcoins, and these patterns mirror what we saw in the July 2021 bear market bottom and the January 2022 local bottom.”

Altcoins like Solana and TRON brought inflows of $4.8 million, $1.8 million, and $0.4 million respectively.

Meanwhile, the cumulative crypto market cap stands at $1.37 trillion at the time of press.