For the first time in six weeks, Bitcoin and other digital assets recorded steady capital inflows, bringing signs of recovery in the crypto market.
Bitcoin and Solana are driving the market, meanwhile Ether is putting on the brakes
According to the latest weekly report published by CoinShares, a digital asset management company, the cryptocurrency market has seen significant capital inflows. It occurred between September 22-28. The biggest beneficiary of this trend was Bitcoin, which recorded increases of $20.4 million.
Following suit, Solana became $5 million richer, making it one of the few altcoins recording increases. According to CoinShares, Solana is holding its 27th week of growth, making it one of the most promising altcoins this year.
Unfortunately, Ether did not share this good fortune, recording an outflow of $1.5 million. This is the seventh consecutive week of recorded capital flight from this cryptocurrency, cementing its status as the least attractive altcoin, according to CoinShares.
Flows in other altcoins, including XRP, which seemed promising in the previous week, are now recording negative or minimal changes.
Reasons for increases in the crypto market
CoinShares analysts argue that this capital movement is the result of a combination of several factors, such as rising cryptocurrency prices, concerns about the US government debt and uncertainty around government financing.
It should be added that the political motives mentioned by CoinShares are related to the ongoing negotiations on the financing of the US government. Recent concerns about an impasse over the budget bill suggested that the US government could collapse on October 2. However, last-minute efforts by Senate leaders avoided this scenario by putting in place temporary solutions that secure funding until November 17. It remains to be seen in the near future whether Congress and the President will be able to reach an agreement on the budget after the current appropriations are exhausted.
Focusing instead on geographic receipts, we note that the leaders this week are Germany, Canada and Switzerland, which raised $17.7 million, $17.2 million and $7.4 million, respectively.
In contrast, the United States recorded capital outflows of $18.5 million, followed by Sweden and Brazil with outflows of $1.8 million and $900,000.
Stablecoins with a gentle rebound
Using the Looknode.com platform, we can see that the above data is reflected in the number of stablecoins in circulation. However, this chart suggests not to be overly optimistic. The aforementioned rebound is very gentle, and on a macro scale, almost imperceptible.
It should be remembered that despite the increases in the value of Bitcoin, stablecoins in the cryptocurrency market are declining. In addition, this trend has been in place since March of last year.
