DeepSeek News Sparked $530M in Withdrawals Before Quick Recovery: CoinShares

Investment in digital assets experienced significant inflows totaling $527 million in the past week. However, a closer look at the weekly fluctuations indicates a varied investor sentiment, notably influenced by broader market anxieties. This was exemplified by $530 million in outflows observed on Monday, following news related to DeepSeek.

Despite the initial downturn, the market rebounded effectively, garnering over $1 billion in inflows later in the week. With 2024 seeing $44 billion in inflows and $5.3 billion year-to-date, along with marked price surges, the recent sell-off aligns with expectations, according to reports from CoinShares.

XRP has taken the lead as the top-performing altcoin. Recent data shows that Bitcoin enjoyed inflows of $486 million last week, while investments aimed at shorting Bitcoin recorded inflows for a second consecutive week, totaling $3.7 million. Ethereum’s performance was less inspiring, concluding the week with no net inflows, largely due to its elevated sensitivity to developments in the tech sector and concerns regarding global economic stability.

XRP stands out with year-to-date inflows of $105 million, which includes $15 million from last week alone. Altcoins overall saw positive interest, with Solana attracting inflows of $4.5 million, Chainlink receiving $3.1 million, and Cardano drawing in $1 million. In contrast, Litecoin reported a minor outflow of $0.2 million.

Additionally, multi-asset investment products recorded nearly $9 million in inflows over the past week, indicative of continued interest among investors in diversified digital portfolios. Moreover, blockchain-related equities have seen $160 million in year-to-date inflows, as many investors view the recent price drops as an opportunity for purchasing.

Regionally, the US dominated inflows with a total of $474 million for the week, contributing to a year-to-date total of $5 billion. Europe mirrored this trend, with digital asset products drawing in $78 million last week, bringing the cumulative year-to-date inflows to $93 million.

In Europe, Switzerland led with inflows close to $58 million, followed by Germany which saw inflows of $22.3 million. Conversely, Sweden experienced outflows amounting to $3.6 million.

Other regions also benefitted from positive inflows. Brazil reported inflows of $15.8 million, while Hong Kong added $2.3 million during the same timeframe. Australia recorded a modest inflow of $0.1 million.

On the contrary, Canada experienced substantial outflows totaling $43 million, likely due to worries about potential trade tariffs from the US.