Cryptocurrencies Register Sixth Straight Week of Inflows, Led by Bitcoin

Cryptocurrency funding merchandise and funds posted inflows for a sixth consecutive week, as traders considered current regulatory challenges within the sector as shopping for alternatives, knowledge from digital asset supervisor CoinShares confirmed on Monday.

Inflows to the sector hit $95 million (roughly Rs. 700 crores) final week, led by investments in Bitcoin of $50.2 million (roughly Rs. 370 crores), in response to CoinShares knowledge as of September 24. During the last six weeks, cryptocurrency inflows amounted to $320 million (roughly Rs. 2,360 crores). For 2021, inflows have been $6 billion (roughly Rs. 44,250 crores). Bitcoin price in India stood at Rs. 33.64 lakhs as of 11:30am IST on September 28.

Bitcoin bore the brunt of unfavourable investor sentiment of the final two quarters. Final week’s inflows have been simply the fourth week of inflows out of the final 17. Up to now this 12 months, inflows into Bitcoin remained sturdy at $4.3 billion (roughly Rs. 31,710 crores).

On Friday, China’s strongest regulators intensified a crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting Bitcoin and different main cash and pressuring cryp to- and blockchain

-related shares.

However analysts stated traders on Monday appeared to have shrugged off the information.

“Once again we’re seeing some real resilience in Bitcoin, which at one stage was pushing $40,000 (roughly Rs. 29.5 lakhs),” stated Craig Erlam, senior market analyst at OANDA in London.

Bitcoin was final down 0.2 p.c at $43,108 (roughly Rs. 31.8 lakhs).

Blockchain knowledge supplier Glassnode, in its newest analysis be aware on Monday, pointed to the “relatively low utilisation” of the Bitcoin block-space,” which can be both a bearish and bullish signal.

It added that current transactions on Bitcoin are at 175,000-200,000 per day, “that are just like ranges seen within the 2018 bear market.”

CoinShares data also showed Ether products had the second most inflows last week at $29 million (roughly Rs. 210 crores), as investors looked to further improvements in the Ethereum blockchain. Ether price in India stood at Rs. 2.32 lakhs as of 11:30am IST on September 28.

Ether though on Monday was down 2.1 percent at $3,000.88 (roughly Rs. 2.2 lakhs).

Assets under management at Grayscale and Coinshares, the two largest digital asset managers, dipped last week to $38.016 billion (roughly Rs. 2,80,370 crores) and $3.671 billion (roughly Rs. 27,070 crores), respectively, pressured by the decline in crypto prices following China’s regulations news on Friday.

© Thomson Reuters 2021

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