- According to data compiled by CoinShares, investors added some US$299 million to Bitcoin products, while funds focused on other cryptocurrencies like Solana, Ether and Polkadot saw outflows.
- Prices for major cryptocurrencies including Bitcoin have stabilized somewhat and Bitcoin’s continued resilience by hugging the US$30,000 level has provided some degree of comfort for investors.
While cryptocurrencies were savaged over the past week on the failure of algorithmic stablecoin TerraUSD, the idea that investors exited the market altogether was exaggerated.
Instead, many long-term cryptocurrency investors sought safety in the “original” digital asset – Bitcoin.
According to data compiled by CoinShares, investors added some US$299 million to Bitcoin products, while funds focused on other cryptocurrencies like Solana, Ether and Polkadot saw outflows.
Even in a market as volatile as cryptocurrencies, there are perceived “havens” in times of tumult and investors may have been moving out of stablecoin pairs into Bitcoin as a result.
Bitcoin, which spawned the trillion-dollar cryptocurrency industry is still seen as the most resilient digital asset, especially given that its creation cannot be pinned down to an individual or group of individuals and it still has the biggest name recognition.
Outside of cryptocurrency circles, many still use Bitcoin, blockchain and cryptocurrency as interchangeable terms.
There is also no shortage of Bitcoin maximalists who see the cryptocurrency as the currency of the future, including El Salvador President Nayib Bukele, who this week hosted representatives from over 40 countries in what’s been dubbed as “Davos for Bitcoin.”
Cryptocurrencies have increasingly become correlated with tech stocks and U.S. equities as more institutional investors have waded into the space and macro conditions have seen sharp falls in prices, even without the TerraUSD collapse.
Prices for major cryptocurrencies including Bitcoin have stabilized somewhat and Bitcoin’s continued resilience by hugging the US$30,000 level has provided some degree of comfort for investors.
A significant amount of futures were also liquidated in last week’s carnage, helping to deleverage the cryptocurrency markets in general as well, which should provide investors with some respite.
