XRP, Solana Receive $3.9 Million Inflows on Upbeat Market, Here's Price Reaction

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According to the newly released CoinShares report, digital asset investment products saw $43 million in inflows for the 11th week in a row, with a significant increase in short position inflows due to recent price appreciation and potential downside risks.

Bitcoin saw a larger chunk of the inflows, seeing $20 million inflows in the past week, increasing the year-to-date total to $1.7 billion.

Altcoins like Solana and XRP benefited from the optimistic sentiment, with inflows of $3.1 million and $0.8 million, amounting to a total of $3.9 million. Cardano investment products saw outflows of 0.3 million.

Price reactions

Alternative cryptocurrencies, otherwise referred to as altcoins, received inflows as investors shifted their attention to this asset class. Notably, the fact that Bitcoin’s momentum slowed after touching a high of $45,000 fueled capital flight to altcoins.

*XRP/USD Daily Chart, Courtesy: TradingView*

After three days of consecutive price increases, XRP reached a high of $0.7 in Saturday’s trading session, which saw altcoins outperform Bitcoin following a stunning ascent in recent weeks.

Solana, the sixth largest cryptocurrency by market capitalization, reached new yearly highs of $77.77 on Saturday, capping a surge in which the SOL token has gained 511% year to date.

Following the weekend’s spectacular gains, crypto assets are suffering significant declines. According to CoinGlass statistics, almost $312 million in crypto trading positions betting on rising prices were liquidated — the highest such figure since at least mid-September.

XRP, like the rest of the crypto market, was seeing profit-taking, down 4.83% in the previous 24 hours to $0.624. Solana dropped 2.54% in the previous 24 hours to $69.52.

This week, investors are anticipating U.S. inflation data and the Fed’s final policy meeting in 2023, both of which might put bold bets on rate reduction to the test. Global equities and U.S. equity futures dipped on Monday as the dollar index rose, indicating a cautious mood.