Bitcoin appeared to be recovering in the past two days after macroeconomic concerns worldwide pushed the largest cryptocurrency to lose significant valuation, along with most other crypto assets. In fact, investors have held up strong amid the chaos of the past week, with digital asset flows registering renewed positive movement.

In the last week of February, $38 million was deposited into digital asset investment funds, “despite the ongoing turmoil in Eastern Europe,” CoinShares noted in its latest report.

However, it also highlighted that flows were one-sided, with investment products in the Americas contributing the bulk of inflows. In the last week of February, America saw inflows totaling $95 million, even as European investment products recorded approximately $59 million in outflows during this time.

This is despite the booming market that crypto Exchange Traded Products has in Europe, with around 79 ETPs trading on various exchanges across the continent.

However, the state of war in Europe and the economic concerns that come with it could explain the sudden outflow of risky products such as cryptocurrencies. In addition, economic sanctions against Russia have further exacerbated this problem, with European equities experiencing a similar decline.

Another interesting aspect from last week was Bitcoin’s emergence as a reliable store of wealth, even if many had questioned its value when the asset fell earlier in the week. The CoinShares report noted that Bitcoin saw inflows totaling $17 million last week, marking the 5th consecutive week of $239 inflows. Ether, on the other hand, saw inflows totaling $4.2 million, while most other altcoins saw no positive change.

Source: CoinShares

The sudden influx of capital into Bitcoin has played out its proposition as a safe asset akin to or even better than gold. Whereas earlier this week, gold suddenly saw renewed interest as the panic of the Russian invasion spread and most stock and crypto markets collapsed. While this had led many to criticize Bitcoin’s role as “digital gold”, its sudden comeback has had a hugely positive impact on the market, and most other digital assets have followed suit.

While the recovery of altcoins was only noticed in the past two days, the report noted that last week “Solana and Litecoin have been the primary focus of negative investor sentiment with outflows totaling US$2.6 million and US$0.5 million, respectively. .”

Surprisingly, the only altcoin to see any influx into its investment products was Tezos. It saw inflows totaling $4.4 million during this period, representing 14% of assets under management. This may be due to the renewed activity recently noticed on the network, thanks to the evolving NFT infrastructure and growing adoption.

Source: CoinMetrics

Total daily transactions and active addresses have hit new highs since late last year following upgrades that improved scalability on the network. Many have touted it as an efficient Ethereum killer in the past, even though the native cryptocurrency XTZ ranks 48th in terms of market cap according to CoinGecko.

At press time, XTZ was trading at $3.49 after gaining 12.1% from its valuation last week, but the digital asset still fell 62.1% from its ATH of $9.12 in October . However, the ROI was 632.9% year-on-year, which explains its popularity among investors.

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