Where does all the crypto money go?

It wasn’t that long ago that Bitcoin was a fantastic proxy for the entire cryptocurrency industry.

What was good for him was good for the rest, and vice versa. Now we have to look a lot further to get a good idea of ​​what is going on.

Let’s take a look at a typical example and answer another question in the process …

Where does all the crypto money go?

CoinShares, a digital asset manager, released new data on the crypto scene on Monday, showing the fifth consecutive week of influx.

$ 41.6 million was paid for the week ending September 17. For 2021 to date, $ 5.96 billion in investor money has poured in.

Previously, this meant that Bitcoin prices would rise alongside new money. This has been the case for most of the year, but something has changed.

Just look at the price of Bitcoin over the five weeks mentioned by CoinShares:

Instead of the kind of price increase we were seeing before, Bitcoin lost value as silver entered the industry.

Okay, we can normally open an Ethereum chart to find where that money is going. Except that doesn’t see any price increase from the crypto influx either.

5 week ethereum chart

It is clear that something has changed, and we can also extract other data to save it.

Check out a more detailed look at Bitcoin’s net inflows / outflows over the past few months:

bitcoin net flowchart

We might as well take a look at Ethereum’s net I / O, while we’re at it:

ethereum net flow diagram

Bitcoin had a good start to the year, but it is suffering now. Negative investor sentiment towards it has only resulted in net inflows in three of the past 16 weeks, according to CoinShares data.

This is also seen in the assets that CoinShares manages, with the total market share percentage for Bitcoin dropping from 81% in January to 67% when the report was released last week.

Money is pouring into cryptocurrencies, but it’s not going to Bitcoin, and Ethereum isn’t doing much better.

Gone are the days when Bitcoin could be used as a proxy for the entire crypto scene due to Bitcoin’s dominance.

For a lot of people, this is a good thing. Bitcoin has long been considered an archaic type of crypto for people who really like finding and controlling the latest small alt coins and betting on big price hikes as others catch up.

For a lot more people, including me, this is a problem. This is the Wild West and apart from small investments, there is no room for these kinds of assets in my portfolio and with my risk tolerance.

Fortunately, there are other options to profit from the crypto industry without this kind of exposure.

My friend and esteemed colleague, Christian DeHaemer, researched the best ways to do it.

If this sounds like your kind of thing, too, keep an eye out for more details. We will let you know very soon when his report is ready.

Take care,

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English Adam

follow the base @AdamEnglishOC on Twitter

Adam’s editorial skills and analysis caught the attention of the editors of Foreigners Club, which he joined in mid-2012. While he has gained years of hands-on experience in the newsroom working alongside former brokers, former options brokers and financial advisors, he is keenly aware of the challenges retail investors face after having started on the ground floor in the field of financial publishing. To learn more about Adam, check out his publisher’s page.

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