Crypto Outflows Reach New Record High, Will The Bitcoin Decline Continue?
26 Marzo 2024 - 6:30AM
NEWSBTC
Crypto investment products have finally registered a week of
outflows after seven weeks of consecutive strong inflows and two
weeks of breaking records after records. In fact, data has shown
that these investment products have now set a new record for the
most outflows in a week, extending the run of record creation.
According to data from CoinShares, investors pulled out $942
million from crypto investment products last week to wipe $10
billion off total assets under management (AuM). Interestingly, a
larger part of this outflow came from Bitcoin, as Spot Bitcoin ETFs
in the US registered outflows every day. Crypto Outflows
Reach New Record High CoinShares’ weekly report on digital
investment funds has revealed crypto investment products have been
witnessing an influx of money for the past two months.
Consequently, these products registered a seven-week run of inflows
totaling $12.3 billion. Bitcoin, the largest cryptocurrency,
received most of these inflows, which helped push its price to a
new all-time high. Related Reading: 7 Days Of Crypto: Key Events
That You Should Keep An Eye On This Week However, last week told a
different tale for Bitcoin’s investment products, as Spot Bitcoin
ETFs in the US registered a weak $1.1 billion in inflows which was
unable to offset Grayscale’s significant $2 billion outflows. As a
result, Bitcoin investment products witnessed outflows of $904
million throughout last week. Short Bitcoin products also witnessed
minor outflows of $3.7 million. The negative sentiment flowed to
other investment products such as Ethereum, Solana, Cardano, and
multi-asset products witnessed outflows of $34.2 million, $5.6
million, $3.7 million, and $7.3 million, respectively. On the other
hand, Litecoin, XRP, and Polkadot saw an increase in their
respective inflows of $2 million, $1.2 million, and $5 million.
Lastly, the total trading volume fell to $28 billion, two-thirds of
the prior week. In terms of region, the USA had the most
outflows of $860 million. Sweden and Switzerland followed with
$36.9 million and $25.2 million respectively. According to
CoinShares, the reversal into a poor sentiment was largely due to
hesitancy from investors. What’s Next For Bitcoin? Interestingly,
last week’s outflow from Spot Bitcoin ETFs coincided with a drastic
drop in the price of Bitcoin with the cryptocurrency falling to as
low as $61,370. This shows how much influence these funds now have
over the price of Bitcoin. Last week’s actions show investors seem
to be hitting pause on their enthusiasm for spot bitcoin ETFs.
Whether that pause lasts for weeks or longer remains to be seen.
Related Reading: Why Is The Price Of LUNC And USTC Up Today?
However, sentiment can shift quickly in the cryptocurrency market
and recent price action shows the industry might be returning to
bullish mode. According to data from BitMEX Research, Spot Bitcoin
ETFs registered a day of net inflows yesterday. Net inflow recorded
was $15.7 million, the lowest inflow day since January 26. Bulls
have now taken over to push the price of Bitcoin by 5.38% in the
past 24 hours. At the time of writing, Bitcoin is trading at
$70,676 and could reach $73,000 again very soon. BTC price drops
from $71,000 | Source: BTCUSD on Tradingview.com Featured image
from Atlantic Council, chart from Tradingview.com
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