Investors Flock to Altcoins and NFTs as Risk Appetite Grows: Crypto Market Update

According to analysts at Deutsche Bank, recent trade agreements between the US and countries such as Indonesia and Japan have sparked hopes for further deals, leading to increased investor confidence. As a result, investors are shifting towards riskier assets, including altcoins and NFTs. The CoinDesk 20 index has dropped 0.5% in the past 24 hours, while the CoinDesk Memecoin index has risen 2%. Bitcoin has seen a 0.4% decline, but allocations are being redirected towards riskier investments. "We're seeing a clear shift in momentum across the crypto market, with strong capital rotation away from bitcoin and into altcoins," said Lukas Enzerdorfer-Konrad, Bitpanda's deputy CEO. The NFT space has experienced a significant 35.6% increase in market capitalization this week, following a prolonged bear market. Ether ETFs continue to attract capital, with $830 million in inflows this week, bringing the total net inflow for the month to $4.1 billion.