The Bitcoin Price Drop has been the talk of the town in the crypto world, with Bitcoin-related funds experiencing outflows of $13 million over the past week. This marks a reversal of the bullish inflows seen in the previous five weeks, according to Coinshares analyst James Butterfill.
Bitcoin Loses Its Shine
Bitcoin-related investment products seem to have lost their allure among crypto investors, recording their first week of outflows since Blackrock filed for spot Bitcoin ETF in June. The past week saw Bitcoin investment products suffer outflows of $13 million, ending a five-week streak of inflows. Short Bitcoin products also experienced outflows of $5.5 million.
Ether and XRP Gain Traction
In stark contrast to the Bitcoin Price Drop, Ether (ETH) and XRP (XRP) investment products have seen a combined inflow of $9.2 million over the last week. Ether investment products were the star performers last week, with inflows of $6.6 million. XRP funds also saw a healthy inflow of $2.6 million.
Ripple’s Partial Victory Spurs XRP
The shift in investor sentiment follows Ripple’s partial victory against the United States Securities and Exchange Commission on July 13. The court ruled that XRP isn’t a security when sold on exchanges to the general public, which led to a 76% spike in XRP’s price.
Bitcoin Still Dominates…For Now
Despite the Bitcoin Price Drop, Bitcoin remains the dominant digital asset investment product, with $558 million in inflows so far in 2023 and a total of $25.0 billion in assets under management. This accounts for 67.4% of the total market share. However, the recent shift in investor sentiment could signal a changing tide in the crypto market.
The Future of Bitcoin
The Bitcoin Price Drop comes at a time when a slew of financial institutions have filed for Bitcoin spot Exchange Traded Fund applications with the SEC since mid-June. These include BlackRock, ARK Invest, Fidelity, Galaxy Digital, VanEck, Valkyrie Investments, NYDIG, SkyBridge, and WisdomTree. The future of Bitcoin remains uncertain, but one thing is clear: the crypto market is anything but predictable.