Institutional inflows into altcoins XRP, ETH, and SOL contrast with significant outflows from Bitcoin, which saw $571 million in exits. Despite prevailing bearish sentiments, XRP continues to attract institutional interest, while Ethereum and Solana also report inflows. The market’s overall activity is subdued due to macroeconomic uncertainties and recent trading volume declines.
The cryptocurrency market faced significant losses as investors experienced heightened sell pressures, especially on Bitcoin (BTC), while altcoins like XRP, Ethereum (ETH), and Solana (SOL) saw institutional inflows. Analysts predict that fresh capital could accelerate the growth of these altcoins as the market has generally traded sideways, erasing earlier gains this month.
A report from CoinShares Digital Asset Weekly Flows indicated bearish sentiment across crypto assets last week. XRP saw substantial institutional inflows, reaching $38.3 million over the past seven days, an increase from monthly inflows of $68.9 million. This surge highlights bullish sentiments in XRP despite broader market sell-offs, maintaining its status as a preferred asset for institutional investors last year due to anticipated price increases.
Large-scale investments in altcoins like Ethereum saw notable activity related to spot ETFs, which are significant drivers of market momentum for traditional investors. XRP whales have responded by accumulating more assets alongside easing US regulations that bolster the investment climate. Following the political shift from Donald Trump’s election, XRP’s price surged to $3, briefly overtaking USDT in market capitalization, which exceeded $140 billion. Thus far in the year, XRP has garnered $200 million in inflows.
Ethereum reported inflows of $3.7 million, a minor uptick from total monthly gains amounting to $789 million. This follows a notable price decrease below $2,700 following the Bybit incident. Year-to-date, Ethereum has seen over $984 million in inflows, with expectations to surpass $1 billion. Meanwhile, Solana and Cardano recorded inflows of $9 million and $0.1 million, respectively.
In stark contrast, Bitcoin faced the largest decline among cryptocurrencies, with institutional exits totalling $571 million, resulting in net flows of $508 million. This negative performance has adversely impacted market sentiment, with BTC’s price dipping below $100,000. Traders are hopeful for recovery but are cautious due to macroeconomic uncertainties affecting market stability.
