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Bitcoin (BTC), the leading cryptocurrency in terms of market capitalization, hit record outflows in the past week. CoinShares, a digital currency manager, released a report on May 17, noting that BTC lost $98 million (£69 million) and these funds were solely from BTC investment products. Reportedly, the outflow accounted for 0.2% of assets under management (AUM).
According to CoinShares’ report, all other digital investment products registered inflows, totaling $48 million. As such, the firm concluded that investors are diversifying their portfolios by investing in coins with upcoming developments, such as Cardano (ADA) and Polkadot (DOT) with inflows amounting to $6 million and $3.3 million, respectively. However, ETH was the most popular coin after getting inflows worth $27 million.
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ETH set a new record as well, seeing as for the first in the history of cryptocurrencies, its investment product trading volumes surpassed BTC’s. Per CoinShares’ data ETH investment products had a trading volume of $4.1 billion, while BTC recorded a volume of $3.2 billion. For comparison purposes, investors injected $15.6 billion in BTC products in 2020, while ETH only got $2.5 billion in the same period.
BTC continues affecting the altcoin market
This news comes after BTC/USD made moon shots in April to set a new all-time high (ATH) at $64,863.10 on April 14. While the coin struggled to maintain this bullish momentum, it soon made a sharp downward correction and traded above the $50,000.00 level for a few days before plunging past this support level to trade as low as $47,714.66.
However, the coin soon gained momentum and breached past the $50,000.00 and remained bullish until a tweet from Elon Musk spurred a new bearish trend in the BTC market. These bears pulled BTC down from $51,330.84 to $42,981.41 at the time of writing. This marks the lowest point that BTC has hit since February 9.
As is the norm in the crypto market, BTC’s performance dictates the direction that most alternative coins will take. At the moment, all the coins in the top-10 list of leading cryptos, except XRP and USDT, are bleeding with ICP being the largest loser after shedding 16.41% of its value over the past 24 hours.
