The digital asset market continues to face pressure with capital outflows from investment products over the past week. According to CoinShares’ report, the total outflow reached $952 million, reflecting investors’ cautious sentiment amid uncertain regulations in the US.
Causes from Policy and Regulations
The delay in passing the Clarity Act in the US has created widespread apprehension in the market. Additionally, the unclear regulatory policies in the near future may lead large investors to execute large-scale sell-offs, adding further selling pressure across the market.
Ethereum Leads Capital Outflows
Ethereum has become the focal point of capital outflows, with a net withdrawal of up to $555 million. Bitcoin is not immune to this trend, recording outflows of $460 million. Both leading cryptocurrencies are affected by negative market sentiment.
Solana and XRP Show Resilience
Contrary to the overall market trend, Solana and XRP have demonstrated relatively better health. Solana recorded a net inflow of $48.5 million, while XRP attracted $62.9 million. This indicates that investors still maintain interest in some promising digital asset products despite widespread concerns.
The current market landscape reflects a divergence in how investors approach digital asset investment products, depending on their perception of regulatory risks and long-term growth prospects of each currency.
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Selling Pressure Causes Digital Asset Products to Witness Capital Outflows Crisis
The digital asset market continues to face pressure with capital outflows from investment products over the past week. According to CoinShares’ report, the total outflow reached $952 million, reflecting investors’ cautious sentiment amid uncertain regulations in the US.
Causes from Policy and Regulations
The delay in passing the Clarity Act in the US has created widespread apprehension in the market. Additionally, the unclear regulatory policies in the near future may lead large investors to execute large-scale sell-offs, adding further selling pressure across the market.
Ethereum Leads Capital Outflows
Ethereum has become the focal point of capital outflows, with a net withdrawal of up to $555 million. Bitcoin is not immune to this trend, recording outflows of $460 million. Both leading cryptocurrencies are affected by negative market sentiment.
Solana and XRP Show Resilience
Contrary to the overall market trend, Solana and XRP have demonstrated relatively better health. Solana recorded a net inflow of $48.5 million, while XRP attracted $62.9 million. This indicates that investors still maintain interest in some promising digital asset products despite widespread concerns.
The current market landscape reflects a divergence in how investors approach digital asset investment products, depending on their perception of regulatory risks and long-term growth prospects of each currency.