Bitcoin[1] appeared to be recovering over the past two days after macro concerns worldwide had pushed the largest cryptocurrency to lose significant valuation, along with most other crypto assets. In fact, investors have been holding strong amidst the past week’s havoc, with digital asset flows registering renewed positive movement.
In the last week of February, $38 million was poured into digital asset investment funds, “despite the ongoing turmoil in Eastern Europe”, noted CoinShares in its latest report[2].
However, it also highlighted that the flows have been one-sided, with investment products in the Americas contributing most of the inflows. During the last week of February, the Americas saw inflows totaling $95 million, even as European investment products registered around $59 million worth of outflows during this time.
This, despite the flourishing market crypto Exchange Traded Products have in Europe, with around 79 ETPs trading on various exchanges across the continent.
However, the state of war in Europe and the economic concerns that it accompanies could explain the sudden outflow from risky products such as cryptocurrencies. Moreover, economic sanctions on Russia have further ignited this issue, with European stocks showing a similar decline.
Another interesting aspect from last week has been the emergence of Bitcoin as a reliable store of wealth, even as many had questioned its value as the asset dipped earlier in the week. The CoinShares’ report noted that Bitcoin saw inflows totaling $17 million last week, which marked its 5th consecutive week of inflows amounting to $239. Ether[3] in comparison saw inflows totaling $4.2 million, while most other altcoins saw no positive change.
Source: CoinShares
The sudden capital influx into Bitcoin has played into its proposition as a secure asset akin to, or even better than gold. While earlier this week, gold
