Institutional crypto investors appear to be pulling out of the market rapidly, and Bitcoin once again took center stage, posting its highest weekly outflow since March.
Impact of an ongoing bear market?
The crypto summer doldrums are being felt in full force, and weekly trading volume in investment products is a notable 36% below the yearly average. Broader stock market volumes were hit harder after suffering more, falling 62% compared to the yearly average.
Last week, 93% of weekly outflows were long bitcoin investment products, while short bitcoin investment products recorded the 14th consecutive week of outflows totaling $3.1 million.
Bitcoin saw outflows in the region of $111 million. This was the highest reading since March, when the U.S. Securities and Exchange Commission (SEC) began regulatory investigations into cryptocurrency exchanges.
Aside from Bitcoin, Ethereum also saw $6 million in outflows, bringing total outflows in both Ethereum (ETH) and Bitcoin (BTC) to $117 million last week.
BTC rebounds after falling below $29,000 | Source: BTCUSD on Tradingview.com
Altcoins are not left out either, and regionally, outflows were concentrated in two Exchange Traded Product (ETP) providers in Germany and Canada, which saw outflows of $71 million and $29 million, respectively. Uniswap and Cardano also saw outflows of $0.8 million and $0.3 million, respectively.
However, records show that sentiment towards altcoins appears to be improving and has helped cushion the outflows in Ethereum and Bitcoin. Solana saw the largest inflows, hitting $9.5 million, the largest single week of inflows since March of last year.
Of note are XRP and Litecoin with inflows of $0.5 million and $0.46 million, respectively.
A comparative outlook with last week’s performance
This week’s performance of digital asset investment products brought some important milestones. For example, outflows from short bitcoin positions have stopped for the first time in about 14 weeks.
Compared to the weekly average of $1.5 billion recorded so far this year, last week’s trading volume for digital asset products was remarkably low at $915 million.
On a regional basis, negative sentiment was mostly concentrated in North America, which saw $11 billion in outflows from both Canada and the United States. Germany recorded inflows of US$5 million, while Switzerland and Sweden recorded outflows totaling US$3.2 million and US$2.6 million, respectively.
Featured image from iStock, chart from Tradingview.com
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