Millions of Crypto Funds Vanished for the Fifth Week Running While $LTC and $XRP Grew

• Millions of cash outflow from crypto funds in the last five weeks
• Altcoins like LTC and XRP following a different trend

Cryptocurrency investments across the market have declined sharply for the fifth week. Most institutional investors have pulled out of their investment as the outflow number touched $232 million. The assets under management have seen themselves go down by 0.7%. Even the volume of investment across cryptocurrency products only amounted to $900 million in the past week. This shows that cryptocurrency investment experienced a staggering 40% decline compared to the previous year’s average. At the same time, the cryptocurrency exchanges also projected a reduction in their trading volumes because of users moving out. 

The Potential Impact of Cryptocurrency Funds Outflowing

Bitcoin, widely known as the most popular cryptocurrency, was at the center of outflows generated by institutional investors. It lost $33 million in total when five weeks of outflow value was calculated. People across the crypto market started shorting their assets, a market strategy allowing them to earn money even in a downtrend. 

This resulted in a further outflow of $1.3 million as bitcoin prices went down. However, when all top cryptocurrencies have seen themselves do down thick and fast, some altcoins in the market have managed to reverse the trend through inflows. However, Ethereum is an exception, as it lost $1 million in total outflows. 

$LTC and $XRP took a whole new trajectory which saw them gain $1 million and $3 million, respectively. The growth behind $LTC can be linked to its upcoming Litecoin halving event, which has always led to a positive trend reversal. While $XRP investment products slowly turned this year to their name by surpassing all expectation levels.

XRP has continued to trade in a choppy market since the SEC started investigating them for multiple breaches. Many people are suggesting that the SEC drama could finally come to an end. Hence, investors are quickly moving their money inside Ripple as it can soon reach new highs. However, there would still be a risk of outflows as nothing is guaranteed yet. 

Investment Expectations from the Remaining Months of the Year

These days most people are looking to hop off this bandwagon that doesn’t follow an upward trajectory. Many have already lost millions of their investment due to sudden crashes across crypto markets. 

Conclusion

Nonetheless, when notable cryptocurrencies much higher in the chain are experiencing huge outflow, other altcoins like LTC and XRP have continued to strengthen themselves with renewed inflows. Due to multiple projects that are supposed to begin in both LTC and XRP, people have higher expectations. Therefore, they have attracted the most interest in such dire situations.