Altcoins Lure Investors Amidst Market Volatility

Amidst market volatility, altcoins continue to lure investors with a net inflow of $16 million, contrasting the outflows in other crypto classes. While Bitcoin ETF inflows remain subdued due to the recent price correction, trading volumes stayed high at $28 billion. The correction led to a $10 billion decrease in total AUM, although they still surpass prior cycle highs at $88 billion.

Why Did Investors Flock to Altcoins Amidst Market Turmoil?

Despite the prevailing market sentiment, altcoins sparked investor interest, resulting in a net inflow of $16 million. This surge of interest stands in contrast to the outflows observed in other crypto asset classes.

Bitcoin ETFs: Inflows Subdued

The recent price correction has had a cooling effect on inflows into Bitcoin ETFs. While trading volumes remained high at $28 billion, they fell short of the previous week's levels. This correction reduced total Assets Under Management (AUM) by $10 billion, though they remain above prior cycle highs at $88 billion.

Withdrawals Hit Major Cryptos Hard

Bitcoin (BTC) bore the brunt of the withdrawals, accounting for $904 million in outflows. Minor withdrawals were also observed for short-Bitcoin products, totaling $3.7 million. This development followed a 10% retracement from Bitcoin's all-time high. Cardano (ADA), Solana (SOL), and Ethereum (ETH) also experienced significant withdrawals of $3.7 million, $5.6 million, and $34 million, respectively.

Altcoins Buck the Trend

Despite the negative market sentiment, altcoins sparked investor interest. Polkadot (DOT) received the most inflows, totaling $5 million, followed by Avalanche (AVAX) at $2.9 million and Litecoin (LTC) at $2 million. This suggests that investors are seeking diversification and value in alternative crypto assets.

Outflows Spread Globally

The negative sentiment was not limited to the US market, as outflows occurred in Sweden ($37 million), Switzerland ($25 million), Hong Kong ($35 million), and Germany ($4 million). However, Brazil and Canada defied the trend, with inflows of $9 million and $8.4 million, respectively. This suggests that the market downturn is having a varied impact across different regions.

Bitcoin's Recovery and Kiyosaki's Bullish Outlook

Recent data from CoinMarketCap indicates that Bitcoin is experiencing mild recoveries, suggesting that the worst of the selloffs may be over. However, CoinGlass data reveals a substantial liquidation event, with leveraged futures positions worth over $100 million being forced to close in the last 24 hours.

Despite the volatility, renowned author Robert Kiyosaki has reiterated his bullish outlook for Bitcoin's future. He recently stated that he plans to purchase an additional 10 Bitcoin units before the upcoming halving event in April. Kiyosaki believes that this event could affect the asset's scarcity and, thus, its value.

He advises those who cannot afford a whole Bitcoin to consider fractional ownership by buying Satoshis or investing in Bitcoin ETFs. This suggestion demonstrates his awareness of potential accessibility issues for some investors and his desire to provide everyone with the opportunity to invest in digital assets.

At the time of writing, Bitcoin is trading at $67,565.00, up by 3.33% in 24 hours, indicating a steady recovery from the weekend's lows.