Altcoin Market Shows Signs of Recovery
After a five-week period of instability, the altcoin market is showing signs of recovery, with an inflow of $226 million into global crypto funds, according to recent data shared in a CoinShares report on March 31. This movement, which comes amid a backdrop of economic and political uncertainty, reveals cautious optimism on the part of investors, with a notable focus on altcoins.
The rally in altcoins, which include Ethereum, Solana, XRP and Sui, comes after a four-week period of net outflows totaling $1.7 billion. The move suggests renewed interest in alternative cryptocurrencies like Ethereum and Solana, which are leading this recovery movement. CoinShares head of research James Butterfill highlighted in the report the return on investment, but notable caution from investors.
“Digital asset investment products saw $226 million in inflows last week, suggesting a positive but cautious investor outlook. Following the largest outflows on record, ETPs saw 9 consecutive trading days of inflows. Last Friday was the exception, with small outflows totaling $74 million, likely in reaction to core personal consumption expenditures in the US beating expectations, implying that the US Federal Reserve is likely to remain hawkish despite recent data alluding to weak growth.”
The caution seen in the market reflects global economic uncertainties amid the recent release of US economic data, as well as political tensions, with US President Donald Trump’s tariff announcements.
However, despite the market uncertainty, Bitcoin continues to attract the majority of investment, with net inflows of $195 million last week. “Bitcoin saw inflows totaling $195 million, while short bitcoin investment products saw outflows for the 4th consecutive week totaling $2.5 million. The recent price declines have driven the total assets under management of the global bitcoin ETP to its lowest level since just after the US election, at $114 billion.”
In the same vein, the report also revealed that Altcoins as a whole recorded their first week of inflows totaling $33 million. According to the data, the main beneficiaries of these inflows were Ethereum, Solana, XRP, and Sui, with inflows of $14.5 million, $7.8 million, $4.8 million, and $4.0 million, respectively.