XRP, Litecoin benefit from negative sentiment towards Bitcoin
- Bitcoin funds saw outflows of more than $32 million over the last week as sentiment among traders turned negative.
- XRP and Litecoin witnessed weekly inflows of $0.5 million in the last seven days.
- Negative sentiment towards BTC has acted as a bullish catalyst for XRP and Litecoin funds.
Institutional investors pulled capital out of Bitcoin funds for a fifth consecutive week as sentiment towards BTC turned negative. While the flagship cryptocurrency loses popularity among market participants, XRP and Litecoin funds have witnessed capital inflows.
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XRP, Litecoin funds see capital inflows
Based on data from CoinShares' latest report on institutional capital inflow, investors are moving funds out of cryptocurrency investment products, particularly Bitcoin and Ethereum. Outflows from overall crypto investment funds amount to $232 million in the last five weeks.
The following table shows the weekly and monthly flows by asset in US Dollars.
Weekly capital flows by asset
Bitcoin and Ethereum noted weekly outflows of $32.7 million and $1 million, respectively. On the contrary, Litecoin and XRP saw inflows of around $500,000 overall over the past week. Interestingly, these are the two assets that benefited the most from negative sentiment among traders towards Bitcoin.
Trading volumes across cryptocurrency exchanges have declined since late 2020, data from the report shows. Trading volume across exchange platforms has plunged to a new low of $20 billion for the third week of May.
In an environment where investors are pulling out from assets like Bitcoin and Ethereum, XRP and Litecoin stand out with positive capital inflows. This is a key development for the two altcoins.
What XRP and Litecoin holders can expect
The community of XRP holders wait for an outcome of the US financial regulator Securities and Exchange Commission’s lawsuit against Ripple. As per recent developments, XRP holders are anticipating a positive outcome for the cross-border payment-remittance firm. Find out more here.
Meanwhile, Litecoin is less than 80 days away from its third halving event and the altcoin’s on-chain metrics paint a bullish picture for the asset. Read more here.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
