Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B

Cryptocurrency funds and products posted another week of inflows as institutional investors poured in $154 million in the week ended Nov. 19. This brings in year-to-date crypto inflows to $9.2 billion, far surpassing $6.7 billion in 2020.

In contrast to crypto, investors have ploughed a total of $1 trillion into equities, according to BofA. “10-year U.S. real rates now -4.6%, a level in the past 200 years that has been associated with panics, inflations, wars & depression, and a level today increasingly responsible for froth in crypto, commodities, and U.S. stocks,” said Michael Hartnett at BofA.

In crypto, Ethereum had its fourth straight week of inflows at $12.6 million, bringing this four-week tally to about $480 million.

Meanwhile, some altcoins like Tron and XRP saw minor outflows for the first time in many months, led by Cardano at $2.1 million.

TRX 2.23% TRON / USD TRXUSD $ 0.07
$0.002.23% Volume 230.61 m Change $0.00 Open $0.07 Circulating 91.02 b Market Cap 6.01 b 1 y Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 y Justin Sun Stepping Down from Tron (TRX) Leadership To Be A Diplomat For Grenada 1 y Solana (SOL) Bucks the Trend, Along With Tron (TRX), by Recording Highest Inflows After Bitcoin (BTC): Report XRP -3.99% XRP / USD XRPUSD $ 0.51
-$0.02-3.99% Volume 1.83 b Change -$0.02 Open $0.51 Circulating 51.68 b Market Cap 26.55 b 1 y Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 y SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 1 y Ledger Announces Integration with FTX and Coinbase, Launching Crypto Life Debit Card ADA 3.19% Cardano / USD ADAUSD $ 0.39
$0.013.19% Volume 686.47 m Change $0.01 Open $0.39 Circulating 34.74 b Market Cap 13.66 b 1 y Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 1 y Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 y Solana (SOL) Bucks the Trend, Along With Tron (TRX), by Recording Highest Inflows After Bitcoin (BTC): Report

Among other altcoins, Solana recorded inflows of $8.5 million. Over the last month, its inflows totaled $43 million versus Cardano at $23 million. SOL 4.02% Solana / USD SOLUSD $ 21.05
$0.854.02% Volume 346 m Change $0.85 Open $21.05 Circulating 385.64 m Market Cap 8.12 b 1 y Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 1 y Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 1 y Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows

Bitcoin Continues To Lead

According to the weekly data from digital asset manager CoinShares, Bitcoin, yet again, accounted for the lion’s share of these inflows at $114.4 million. So far this year, total inflows into Bitcoin products and funds have hit $6.7 billion.

Bitcoin continuing to see the majority of inflows has helped it retain its assets under management (AuM) share of 67% over the last month amongst investment products. This may be due to the recently launched ETFs in the US, which saw over 90% of inflows into Bitcoin, as per the report.

The inflows came despite Bitcoin falling from its all-time high of $69,000 to nearly $55,500, “seemingly not impacting the positive investor sentiment.”

According to Glassnode, on-chain data showed that bitcoin holders took profit which is to be expected as price climbs, and it is also typical for any bull market. “As the realization of profits increase, so too does the probability of establishing a macro top,” it noted.

As of writing, BTC/USD is trading around $57k.

“Bitcoin was ripe for a pullback, and it might not be over yet before traders confidently feel a bottom has been made,” said Edward Moya, senior market analyst at OANDA.

Meanwhile, this week, Los Angeles Rams’ newly-acquired wide receiver Odell Beckham Jr. announced that he would receive his total salary from the Rams in BTC.

“It's a NEW ERA & to kick that off, I'm hyped to announce that I'm taking my new salary in bitcoin thanks to CashApp,” he wrote on Twitter.