Cryptocurrencies Register Sixth Straight Week of Inflows, Led by Bitcoin


Cryptocurrency funding merchandise and funds posted inflows for a sixth consecutive week, as traders seen latest regulatory challenges within the sector as shopping for alternatives, information 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 line with CoinShares information as of September 24. Over the final six weeks, cryptocurrency inflows amounted to $320 million (roughly Rs. 2,360 crores). For 2021, inflows had been $6 billion (roughly Rs. 44,250 crores). Bitcoin worth in India stood at Rs. 33.64 lakhs as of 11:30am IST on September 28.

Bitcoin bore the brunt of damaging investor sentiment of the final two quarters. Last week’s inflows had been simply the fourth week of inflows out of the final 17. So far this 12 months, inflows into Bitcoin remained strong 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 crypto- and blockchain-related shares.

But analysts mentioned 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),” mentioned 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 information 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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