Negative sentiment continues to dominate crypto assets as Coinshares reported negative outflows of $102 million in the past week. Bitcoin outflows were $57 million last week, bringing month-to-date outflows to $91 million. Ethereum recorded another week of outflows at $41 million, bringing total year-to-date outflows to $387 million. In anticipation of aggressive monetary policy, digital asset investment product flows have remained choppy.
Cardano and XRP, however, received minor positive inflows in comparison to the huge outflows seen for Bitcoin and Ethereum.
Larger-than-anticipated inflation numbers are adding to the negative sentiment on crypto markets, and the U.S. Federal Reserve is poised to raise interest rates this week to curb growing costs.
In the past week, U.S. stocks sold off heavily, with the Nasdaq dropping sharply into a bear market. Bitcoin and other cryptocurrencies have a history of being linked to equities and other risky assets.
Cardano recovers 15%, XRP regains 4%
Cryptocurrencies dipped to their lowest levels in 2022, owing to a massive sell-off of risk assets. Furthermore, the crypto lending platform Celsius halted withdrawals for its customers, raising concerns about contagion on the broader markets.
The cryptocurrency market capitalization fell below $1 trillion on Monday for the first time since February 2021, recording $958 billion at press time, according to data from CoinMarketCap. Cardano dumped as much as 20% to touch lows of $0.435 before rebounding strongly.
At the time of publication, Cardano was trading up 15% at $0.505. XRP also dipped hard to lows of $0.293 before rebounding nearly 4% to trade at $0.31 at press time.
Ripple CEO Brad Garlinghouse, speaking on the market downturn, assures investors that it will probably only be temporary. “Days like today are never what you hope to see, especially in an industry with as much incredible talent as crypto.” If you recently joined the industry and haven’t seen a downturn like this, know that this too shall pass (advice from someone who’s seen a few downturns over the years).”