Bitcoin [BTC]: Outflows ripple through the market as investor confidence takes a dip
Digital investment products saw outflows of $54 million last week. While investors focused their attention on BTC and short-BTC, altcoins logged inflows Outflows from digital asset investment products...
- Digital investment products saw outflows of $54 million last week.
- While investors focused their attention on BTC and short-BTC, altcoins logged inflows
Outflows from digital asset investment products totaled $54 million last week, bringing the third consecutive week of outflows to $200 million, CoinShares found in a report published on 15 May.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Per its previous report, CoinShares had noted that the continued exit of liquidity from digital asset investment products was due to the negative sentiments ravaging the general cryptocurrency market. As negative sentiments lingered last week, even more divestments were made, with a notable portion of those outflows related to Bitcoin [BTC].
According to CoinShares, the $54 million in outflows from digital asset investment products recorded last week represented 0.6% of total assets under management (AuM). As the market trended downwards, causing the prices of crypto assets to fall, total AuM fell by “13% since their mid-April peak.”
As BTC remains in the $27,000 price range, investment withdrawal climbs
In its report, CoinShares found that “investors focus(ed) on Bitcoin,” as the king coin logged outflows totaling $38 million last week. This represented 70% of the total monies removed from investment products during that period. Moreso, this figure brought the coin’s fourth week of outflows to $160 million.
The additional $38 million in outflows brought the BTC’s month-to-date outflows to $69 million and year-to-date outflows to $78 million. It also led to a 4% reduction in the coin’s total AuM within a seven-day period.
As for short-Bitcoin investments, there were $10.4 million worth of outflows, bringing its month-to-date outflows to $34 million. In the previous week, short-Bitcoin investment products recorded their largest weekly outflows of $23.
How much are 1,10,100 BTCs worth today?
Alts were the winners
Per CoinShares, the multi-assets investment market experienced a total outflow of $7 million last week. However, an interesting trend of inflows was witnessed across eight distinct altcoin assets, “suggesting investors are becoming more adventurous and selective.”
Altcoins such as Ethereum [ETH], Cardano [ADA], Tron [TRX], and Sandbox [SAND] recorded inflows of $100,000, $500,000, $230,000, and $200,000, respectively. Conversely, the only altcoin to witness outflows was Binance’s BNB coin, which saw a withdrawal of $500,000.
Regarding regional sentiments, CoinShares noted:
“Similar to last week, the outflows were broad from a regional perspective, suggesting negative sentiment is not concentrated on just a few investors. That said, the outflows were focussed primarily in Europe, particularly when taking into account that 84% of outflows in the US were from investors selling out of short positions.”
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