Investors used crypto crash after China’s ban to buy most bitcoin in four months last week: CoinShares | Currency News | Financial and business news

[ad_1]

Bitcoin and China

NurPhoto / Getty Images

Investors invested $ 50.2 million in bitcoin-backed assets in the week to September 24, the highest since April, CoinShares said Tuesday. Ether-backed assets saw inflows worth $ 28.9 million, the highest since early June. The continued influxes suggest investors saw China’s ban last week as a buying opportunity, not a deterrent. Sign up for our daily newsletter, 10 things before the opening bell here.

Investment in bitcoin hit its highest level in four months in the week to September 24, when China announced it would ban cryptocurrency trading and mining, triggering an aggressive sell-off that traders used it as a buying opportunity, according to CoinShares’ weekly report on Monday. .

Bitcoin-backed assets attracted the most investment, with inflows of $ 50.2 million in the week ending September 24, the most since the week of April 19, the data shows.

There were also inflows worth $ 28.9 million for ether-backed assets, the highest since June 7.

These inflows continued despite China’s clear ban on all crypto-related activity on the mainland on Friday, which caused crypto prices to drop sharply. Bitcoin fell almost 6% to below $ 42,000 and ether fell almost 8% to hover around $ 2,800 before recovering steadily in the following days.

“The continued influxes suggest that recent headwinds for digital assets, such as China’s expanded ban, have been viewed as buying opportunities for investors,” the report said.

In the month so far, bitcoin has registered $ 100.9 million in entries, Solana has registered $ 59.8 million in entries. Ether’s assets increased by $ 35.1 million, with the majority entering last week.

One of the side effects of China’s ban has been a wave of token purchases attached to decentralized exchanges, which do not rely on any type of intermediary and which market watchers say would benefit users in particular. Chinese seeking to circumvent existing restrictions.

So-called “DEX tokens” like uniswap, sushi or pancakes, jumped on Monday, in some cases by as much as 40%. Most of these platforms operate on the ethereum network, so investors have exploited this by betting heavily on the blockchain’s ether token.

“Sentiment has remained relatively strong for Ethereum as the amount wagered on Eth2.0 progresses,” the report said.

[ad_2]