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January Losses Cross $232 Million As Bitcoin & Ethereum Lead Outflows

By:
Aaryamann Shrivastava
Updated: Feb 1, 2022, 13:37 UTC

While the first month of the new year was expected to bring in higher inflows, the crash derailed the projections and the market delivered accordingly.

January Losses Cross $232 Million As Bitcoin & Ethereum Lead Outflows

As the market continued taking hits from the bears early on in January, most of the Assets Under Management managed to keep themselves afloat. Most except Ethereum.

The altcoin king has been leading the trail of outflows for the entire month and as a result, its month-to-date outflows stood just 18% short of Bitcoin’s.

Out Is the New In?

This week, the CoinShares report highlighted the net flows of the AUM and the results weren’t surprising. While last week most of the assets were still registering minimal inflows, this week it changed with Binance Coin, Solana, Polkadot, and Cardano cumulatively charting $10.4 million worth of outflows.

Ethereum is continuing its 8-week long journey of outflows with the last week leading the previous week with $26.8 million of outflows.

As a result, the overall Month to Date net flows for the altcoin shot up to $111.2 million, just $21 million short of Bitcoin’s $131 million. This is despite the fact that Ethereum AUM is 65% lesser than Bitcoin AUM.

January monthly outflows reach $232 million | Source: CoinShares

Furthermore, the 30% ($650 billion) crash that occurred in the first 3 weeks of the month also contributed to this accomplishment. The cumulative outflows of all the assets for this month were only 12% lesser than December’s $260 million.

These are some concerning figures since just last week the AUM managed to break free of the month-long outflow domination and with this week’s weekly flows standing at just $18 million.

Thus, there’s a possibility of the first week of February observing worse net flows if the market doesn’t recover by then.

Talking About the Market…

Bitcoin and Ethereum are finally observing a stable streak of recovery. In the last 10 days, the king coin has posted an almost 10% rise, followed by the altcoin king shooting up by 14.34%.

However, their progress might continue going forward as the price indicators are signaling the active downtrend quickly losing its strength.

Plus with the Relative Strength Index (RSI) recovering to the neutral zone, a steady rise should put the two biggest cryptocurrencies in a better position to lead the broader market recovery.

Ethereum has recovered by 14% in 10 days – Source: FXEMPIRE

About the Author

Holding a Mass Media Degree has enabled me to better understand the nitty-gritty of being a journalist and writing about cryptocurrencies’ news and price movements, effects of market developments, and the butterfly effect of individual assets nurtured me into a better investor as well.

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