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Shift in Investor Focus Benefits Solana and XRP Amid Bitcoin Outflows

Apr 29, 2024

CoinShares reports that Solana and XRP saw an increase in combined inflows of $4.5 million as investors are turning their attention to alternative coins over Bitcoin. In contrast, Bitcoin and Ethereum experienced outflows, with Bitcoin seeing $423 million and Ethereum $38 million in outflows. CoinShares' data shows that digital asset investment products have seen outflows for three consecutive weeks, totaling $435 million. Moreover, existing ETFs linked to Bitcoin have been witnessing withdrawals, including Grayscale ETF which noted $440 million in outflows. Despite the decrease in inflows to new ETFs, a variety of altcoins have attracted investor interest, signaling a shift towards diversification in crypto portfolios. This trend could potentially reshape the market dynamics, with altcoins potentially gaining ground on Bitcoin's dominance. As anticipation builds for the upcoming Federal Reserve meeting, market sentiment remains cautious yet anticipatory. Market participants are attuned to potential implications of the meeting's indicators on interest rates, foreseeing possible ramifications on digital assets. Solana and XRP have seen declines in value in the past 24 hours, with Solana down 4.80% at $135.22 and XRP down 2.20% at $0.5081. Meanwhile, Bitcoin has also faced a 1.65% drop to $62,356 following a one-week low of $61,928.

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