Bitcoin, XRP Lead $527 Million Rally Amid Market Volatility
The cryptocurrency market showed its characteristic resilience last week, with $527 million inflowing into exchange-traded products (ETPs), marking the fourth consecutive week of positive inflows, as per a CoinShares report shared on Jan. 3.
Despite this positive outlook, the market has not been immune to volatility. Investor sentiment has been influenced by a number of factors, including global economic concerns and the impact of artificial intelligence on the technology sector, as highlighted James Butterfill, Head of Research at CoinShares.
An example of this was the rise of DeepSeek, a Chinese AI company whose open-source model outperformed OpenAI’s ChatGPT. That news sparked concerns about the impact on big U.S. tech companies, prompting a $530 million selloff earlier this week.
However, the market demonstrated its resilience, attracting over $1 billion in inflows by the end of the week. This impressive turnaround reflects investors’ continued confidence in the long-term potential of cryptocurrencies.
“Digital asset investment products saw inflows totaling $527m last week. However, intraweek flows reflected volatile investor sentiment, heavily influenced by broader market concerns such as the DeepSeek news,” the report noted.
O Bitcoin , the largest cryptocurrency on the market, continues to be the preferred choice for investors, driven by the success of spot Bitcoin exchange-traded funds (ETFs). BlackRock’s IBIT stood out, garnering an impressive $918 million in inflows. “Bitcoin saw inflows totaling $486 million last week, while short-bitcoin saw a second week of inflows totaling $3,7 million.”
O XRP also shined during the same period, attracting $15 million in inflows last week. The cryptocurrency has emerged as one of the best performers this year, with year-to-date (YTD) inflows reaching $105 million. The report placed XRP as the second best-performing altcoin currently on the market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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