An 11-week run of inflows into cryptocurrency investment products was followed by an outflow, with $16 million withdrawn from crypto funds between 9 and 15 December. CoinShares reports this data.
Analysts noted that this was more of a profit-taking than a shift in market sentiment. By their data, trading activity remained well above the year-to-date average — $3.6 billion for the week, versus $1.6 billion year to date.
Outflows from the ‘standard’ Bitcoin funds totaled $32.8 million. Losses in the structures that allow short exposure to the first cryptocurrency were far more modest — only $0.3 million.
Ethereum funds lost $4.4 million, while in the previous reporting period inflows amounted to $9.7 million. Avalanche-based instruments saw $1 million withdrawn.
Other altcoins showed the opposite trend — total inflows amounted to $21 million. CoinShares named the main beneficiaries as Solana, Cardano, XRP and Chainlink: $10.6 million, $3 million, $2.7 million and $2 million respectively.
In late November, Matrixport predicted that the first cryptocurrency would rise to $63,140 by April 2024 and to $125,000 by the end of the next calendar year.
Later, Glassnode noted signs of volatile Bitcoin fluctuations in a 50% range around the $36,000 level, and Bitwise predicted a new all-time high for digital gold at $80,000.
In 2024, JPMorgan analysts have suggested that Ethereum could surpass Bitcoin and other cryptocurrencies thanks to upcoming scaling upgrades.