BTC and ETH See Capital Outflows as Traders Shift to Stablecoins

Investors are moving their money from Bitcoin and Ethereum to stablecoins causing capital outflows, in the cryptocurrency market.

Traders are moving funds away, from Bitcoin (BTC) and Ethereum (ETH) towards stablecoins indicating a sense of caution in the cryptocurrency markets. Recent data suggests that capital is being withdrawn from these assets without an inclination, towards other cryptocurrencies typically associated with an “altseason.”

According to the data Bitcoin experienced a decrease of 41,200 dollars while Ethereum observed an outflow of 4,800 dollars on February 4th. Meanwhile, stablecoins saw an increase of 64,400 dollars indicating that traders are leaning towards assets during times of uncertainty.

During an altseason, many alternative cryptocurrencies perform better than Bitcoin over a period of 90 days. Currently, the CoinMarketCaps index, for this trend, is at 33, which is significantly lower than the 75 threshold needed for a surge in alternative coins. Analysts observe that speculative investments are favoring known on-chain tokens than established alternative cryptocurrencies, in the current market scenario.

Investors seem to be proceeding with caution possibly waiting for signals before delving into popular cryptocurrencies or considering new altcoin prospects.