Cryptocurrencies Register Sixth Straight Week of Inflows, Led by Bitcoin: Data

Bitcoin bore the brunt of negative investor sentiment of the last two quarters.

Cryptocurrencies Register Sixth Straight Week of Inflows, Led by Bitcoin: Data

Bitcoin was last down 0.2 percent at $43,108 (roughly Rs. 31.8 lakhs)

Highlights
  • China's powerful regulators intensified a crackdown on cryptocurrencies
  • Current transactions on Bitcoin are at 175,000-200,000 per day
  • Ether products had the second most inflows last week

Cryptocurrency investment products and funds posted inflows for a sixth consecutive week, as investors viewed recent regulatory challenges in the sector as buying opportunities, data from digital asset manager CoinShares showed on Monday.

Inflows to the sector hit $95 million (roughly Rs. 700 crores) last week, led by investments in Bitcoin of $50.2 million (roughly Rs. 370 crores), according to CoinShares data as of September 24. Over the last six weeks, cryptocurrency inflows amounted to $320 million (roughly Rs. 2,360 crores). For 2021, inflows were $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 negative investor sentiment of the last two quarters. Last week's inflows were just the fourth week of inflows out of the last 17. So far this year, inflows into Bitcoin remained robust at $4.3 billion (roughly Rs. 31,710 crores).

On Friday, China's most powerful regulators intensified a crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting Bitcoin and other major coins and pressuring crypto- and blockchain-related stocks.

But analysts said investors on Monday seemed to have shrugged off the news.

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

Bitcoin was last down 0.2 percent at $43,108 (roughly Rs. 31.8 lakhs).

Blockchain data provider Glassnode, in its latest research note 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, "which are similar to levels seen in 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


Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Cryptocurrency Prices across Indian exchanges

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