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Between Evergrande and El Salvador, Bitcoin sees $15M in inflows

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On one side of the world, the Evergrande crisis has given birth to tremors that may have yet more impact on the international crypto-sector. On the other side, El Salvador’s Bukele has gleefully announced that his country is “buying the dip.”

Needless to say, the crypto-landscape today feels action-packed. However, CoinShares’ Digital Asset Fund Flows Weekly Report for 20 September might help put things into perspective more.

Three in a row, and two more

According to the same, the week ending 17 September saw digital asset investment products pulling in inflows of $42 million. There were inflows across all digital assets, including Bitcoin. However, out of the last 16 weeks, the king coin has seen inflows only during three of them.

This week, it recorded inflows of $15 million. CoinShares cited improving investor sentiment as the reason, especially since the same has been overwhelmingly negative in the past. In fact, Bitcoin’s market share of assets under management (AUM) had plunged from above 80% at the start of 2021 to around 67% when the report was released.

Looking at all digital assets, the CoinShares report stated,

“This improved sentiment could be a seasonal phenomenon, but we are not seeing a commensurate rise in volumes in investment products. This suggests that some investors are taking advantage of recent price weakness and the continued rise in alt-coin popularity.”

Popular Bitcoin on-chain analyst Willy Woo also took note of these events. He pointed out that speculators are selling down while on-chain investors have been in strong accumulation mode.

That’s not all, however. Behavior analysis platform Santiment also recorded an increase in exchange inflows as Bitcoin’s price fell on the charts.

As far as altcoins are concerned, the CoinShares report found that Solana, XRP, Litecoin, and Polkadot all saw greater weekly inflows than Cardano.

Bitcoin in deep water

At press time, the Bitcoin Fear and Greed Index was recording a value of 21 – “extreme fear.” What’s more, the wider belief among most was that Evergrande and China FUD have been creeping into the market.

As fear and negativity dominated the market, whales also began moving thousands of BTC from one place to the other.

Ergo, despite the inflows over the week, it would seem that traders will be anxiously watching China to better understand Bitcoin’s trajectory.

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Sahana is a full-time journalist at AMBCrypto. She has a Masters in Journalism and her areas of study include crypto-regulation, digital society, privacy, and intersectionality. Ask her about film photography and philately.