DEFI
Digital Asset Outflow Dampen Sentiments, Bitcoin Suffers Most
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Recent data by Coinshares showed that digital asset investment products faced a significant challenge as outflows reached a total of $59 million last week, contributing to a running total of $294 million in recent outflows. Meanwhile, Bitcoin (BTC) experienced the most substantial hit among all these digital assets, with outflows totaling around $69 million, and short-Bitcoin saw its highest weekly inflow since March 2023, amounting to $15 million.
A Closer Look Into The Outflow Report
The report said the negative sentiment extended to blockchain equities, which recorded total outflows of $10.8 million. This marks the fifth consecutive week of outflows in this sector, reflecting the ongoing uncertainty in the market.
The release showed that the highest weekly outflows by provider was ETC Issuance GmbH, and the amount was $23 million. ETC Issuance GmbH was followed by providers like Purpose Investments Inc ETF, ProShares ETFs/USA, and others, and the outflows were $17 million and $13.5 million, respectively.
Looking at the outflows by asset, Bitcoin was at the top with weekly outflows of $68.9 million and was followed by Ethereum whose outflows were $4.8 million. On a month-to-date (MTD) basis, the outflow of all the assets totaled $62.9 million.
Also Read: Terra Luna Classic Validators Divided On Proposal To Revive USTC And LUNC To $1
What’s Next For Cryptos?
The report also noted that there were inflows on short investment products, which suggests that the sentiment among the investors remains low for the asset segment. According to market pundits, the ongoing concerns over regulations of digital assets and recent dollar strength might have weighed on the sentiments.
The trading volumes also declined by 73% last week to only $754 million as compared to the previous week, the report showed.
Meanwhile, the investors seem to be keeping a close watch on the market from the sideline, ahead of the crucial data that are anticipated to be released by the U.S. Federal Reserve. Several important data, including US CPI and PPI data for inflation, are expected to come this week.
In addition, the recent concerns over reports claiming FTX is requesting authorization to sell off assets worth $3.4 billion, encompassing SOL, FTT, BTC, and ETH, might have dampened the sentiments. It has created immense selling pressure on altcoins, especially SOL tokens, leaving investors worried about the future performance of the market.
Also Read: Crypto Market Selloff, Here’s Why ETH, XRP, SOL Prices Falling Sharply
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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