Lately I’ve been looking at something:
whether funds have continued to spread from BTC into assets like ETH and SOL.
Last week, this signal was actually quite clear.
But this week’s data started to change.
The BTC ETF is still experiencing net inflows, but the strength has clearly weakened.
As for ETH, it went from nearly a net inflow of $700 million in the prior week to a net outflow this week.
SOL is even more pronounced: it was close to $190 million net in the prior week, but this week there’s basically no new money coming in.
So I’m not going to simply interpret this as “funds starting to withdraw from crypto,” because BTC is still maintaining net inflows.
But my view is that, regarding the funds continuing to spread outward, we should downgrade that assessment by one level first.
If later on BTC inflows re-strengthen and ETH and SOL start following again, then the “spreading” logic could still hold.
On the other hand, if BTC can continue to attract money but ETH and SOL fail to keep up, then the market’s risk appetite may not be as strong as we thought earlier.
Lately, I’m increasingly feeling that focusing on day-to-day up and down moves is easy to get swept along.
What’s really worth watching is where the money is going.
$BTC $ETH $SOL
whether funds have continued to spread from BTC into assets like ETH and SOL.
Last week, this signal was actually quite clear.
But this week’s data started to change.
The BTC ETF is still experiencing net inflows, but the strength has clearly weakened.
As for ETH, it went from nearly a net inflow of $700 million in the prior week to a net outflow this week.
SOL is even more pronounced: it was close to $190 million net in the prior week, but this week there’s basically no new money coming in.
So I’m not going to simply interpret this as “funds starting to withdraw from crypto,” because BTC is still maintaining net inflows.
But my view is that, regarding the funds continuing to spread outward, we should downgrade that assessment by one level first.
If later on BTC inflows re-strengthen and ETH and SOL start following again, then the “spreading” logic could still hold.
On the other hand, if BTC can continue to attract money but ETH and SOL fail to keep up, then the market’s risk appetite may not be as strong as we thought earlier.
Lately, I’m increasingly feeling that focusing on day-to-day up and down moves is easy to get swept along.
What’s really worth watching is where the money is going.
$BTC $ETH $SOL