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Cryptocurrency markets outperforming gold

Cryptocurrency

According to a recent survey, investors are withdrawing gold investment funds and directing them to the crypto sector

This week’s CoinShares Digital Asset Fund Flows report indicates that a large volume of investments is flowing from the gold market to cryptocurrency. According to data from the ETF provider, Bitcoin and Ethereum traded products accumulated $ 429 million just last week. The company explained that only once has there been a more significant flow of cryptocurrency investment products than seen last week.

The company currently has a record $ 15 billion in total assets under management. The report brings Ethereum, which stood out last week, in the foreground. The cryptocurrency had tickets of $ 87 million, which represents about 20% of the total tickets.

The report closely assessed gold investment flows to Bitcoin, claiming that, “Gold has suffered from a record $ 9.2 billion investment product outflow in the past four weeks, while Bitcoin has seen inflows totaling $ 1.4 billion. ”

The debate between gold and bitcoin is far from over. According to the Goldprice.org archives, gold prices fell 10% from $ 2,070 / ounce on August 6 to $ 1,860 / ounce as of today. Bitcoin has been moving in a different direction during this period, rising 56% from $ 11,700 in August to around $ 18,300.

The figures accumulated in the year show that gold has only gained 22% compared to Bitcoin’s 150% jump since the beginning of 2020. Ethereum may not be in this photo, but it performed well in the same period. With a 320% increase, from $ 130 in January to around $ 550 at the moment, it has even surpassed Bitcoin.

Regarding the impressive numbers of Ethereum, CoinShares explains: “This suggests that investors are favoring Ethereum, probably due to the greater clarity of the Ethereum management team about the long-awaited Eth2 updates that make the network much more efficient and sustainable.”.

It is important to note that these figures occurred at a time when the US dollar was performing poorly.

Cryptocurrency markets appear to be on a correction path that started earlier this month, when total market capitalization reached a high of $ 591 billion. Markets have fallen about 7% in the past few days to $ 548 billion.

Disclaimer - OBN is an informational website which aims to give the latest blockchain related news to the readers. Articles on OBN should not be considered as investment advice. Trading cryptocurrencies is a high-risk investment, every user is advised to consult an expert before making any decisions.