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According to crypto asset manager CoinShares, Bitcoin (BTC) investment products suffered massive outflows in the prior week as investors instead favored funds centered on alternative cryptocurrencies, or altcoins, such as XRP, Litecoin and Solana.
CoinShares noted that digital asset investment products saw outflows of $107 million in the past week as profit-taking gathered pace.
Digital asset investment products saw outflows this week, totalling US$107m with profit taking gathering pace in recent weeks. Bitcoin was again the primary focus, seeing outflows totalling US$111m, the largest weekly outflows since March. https://t.co/U9xyQuBLsR
— Wu Blockchain (@WuBlockchain) August 7, 2023
Bitcoin was once again the center of attention as it experienced its largest weekly outflows in months. Bitcoin witnessed outflows of $111 million, its largest weekly outflows since March.
Ethereum likewise saw $6 million in outflows, bringing total outflows of both Bitcoin and Ethereum to $117 million in the past week.
The Bitcoin exodus comes as investors appear to have run out of favorable news to bet on following earlier key price triggers.
In contrast, XRP and Litecoin saw inflows as altcoin sentiment appears to be getting warmer, trying to offset outflows from Bitcoin and Ethereum.
Inflows to XRP and Litecoin total nearly $1 million, accounting for $0.5 million and $0.46 million, respectively. The landmark July 13 ruling, which determined that XRP traded on exchanges is not a security, substantially improved investor confidence in altcoins, as evidenced by sustained inflows in recent weeks.
Litecoin saw demand in "halving" week
In the past week, precisely on Aug. 2, the Litecoin blockchain had its third halving event at block 2,520,000, with mining rewards now halved to 6.25 LTC per block.
Notwithstanding the lull in price action, Litecoin has retained positive network fundamentals. According to a recent Twitter post, Litecoin's hashrate is on the verge of breaking a new all-time high. With a current difficulty of 933.2 TH/s, Litecoin is nearing a new record.
Tomiwabold OlajideThe sentiment of the mining community is reflected by two indicators: hashrate and difficulty. A rise in hashrate could indicate that more miners are entering the LTC community.
Arman Shirinyan
Dan Burgin
U.Today Editorial Team
Vladislav Sopov