Cryptocurrency Assets Experience Inflows After Six-Week Drought

Bitcoin Leads the Way

According to the latest report from CoinShares, cryptocurrency assets have seen inflows for the first time in six weeks. Bitcoin was the biggest gainer, attracting $20.4 million in inflows during the week of Sep. 22-28.

Solana Emerges as a Favorite

Solana was the only other asset to show inflows, with $5 million coming in. CoinShares highlights that this marks Solana's 27th week of inflows, making it "the most loved altcoin this year."

But Ethereum Continues to Struggle

On the other hand, Ethereum experienced outflows of $1.5 million, marking its seventh consecutive week of outflows. CoinShares describes Ethereum as "the least loved altcoin."

Altcoins Lag Behind

Flows for other altcoins, including XRP, were negative and minimal. Despite seeing more inflows than Solana in the previous week, XRP faced outflows this time.

Inflows Attributed to Positive Momentum and Government Funding Concerns

CoinShares analysts suggest that the influx of funds into cryptocurrencies is a response to positive price momentum, concerns over US government debt prices, and the recent quagmire over government funding.

Negotiations Over US Government Funding Cause Uncertainty

The ongoing negotiations over US government funding have created uncertainty in the market. Fears of a government shutdown led to predictions that the US government would close down on Oct. 2. However, a last-minute effort by senate leaders allowed for the passage of a stopgap that ensures funding through November 17. The fate of government funding beyond that date remains uncertain.

Germany, Canada, and Switzerland Lead Inflows

In terms of geographical distribution, Germany, Canada, and Switzerland led the charge with inflows amounting to $17.7 million, $17.2 million, and $7.4 million respectively. Australia and France saw minimal inflows, with $0.1 million and no inflows reported, respectively.

United States Bucks the Trend

The United States, in contrast to Europe and Canada, experienced outflows of $18.5 million. Sweden and Brazil also saw outflows, with $1.8 million and $0.9 million respectively.