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Recently, the cryptocurrency market has reached a significant turning point. With Trump announcing the allowance of cryptocurrency to be included in U.S. 401(k) retirement accounts, market sentiment has changed significantly, leading to a surge in cryptocurrency inflows to $578 million, reversing the previous trend of capital outflow.
This policy change not only altered investors' attitudes but also triggered a strong market reaction. Analysts described this phenomenon as an extreme optimism towards encryption, with capital inflow jumping from $223 million to $578 million, showcasing the market's tremendous enthusiasm.
According to CoinShares' latest report, following the announcement, overall inflows rebounded to $1.57 billion, highlighting the market's strong recovery capability. Although there was an initial outflow of funds, this data clearly indicates a rapid restoration of investor confidence.
It is worth noting that although Ethereum has shown strong performance recently, Bitcoin has also quickly caught up, attracting $265 million in inflows. This stands in stark contrast to the $404 million outflows from the previous week, reflecting a significant shift in investor sentiment towards Bitcoin. Many investors now view Bitcoin as a reliable investment option.
Market experts believe that this sudden influx of capital indicates the resilience and potential of the encryption currency market. However, they also warn investors to proceed with caution and closely monitor changes in the regulatory environment and market volatility.
Overall, the recent policy-driven shift in market sentiment has not only resulted in short-term capital inflows but more importantly, it may lay the foundation for the long-term position of encryption in the mainstream financial system. As more investors begin to incorporate encryption into their retirement portfolios, we may witness further maturation and stability of this emerging market.