As a researcher with extensive experience in the digital asset industry, I believe that the recent market trends indicate a cautious stance from institutional investors towards Bitcoin and Ethereum. The outflows of over $688 million from these two cryptocurrencies highlight the bearish sentiment among investors, possibly due to the uncertainty around interest rate cuts by the Federal Reserve.
As a cryptocurrency analyst, I’ve noticed that institutions have shown renewed interest in certain altcoins, specifically Solana, Polygon, and Litecoin, during the past week. Despite a significant withdrawal of over $584 million from digital asset investment products, these coins have managed to capture the attention of institutional investors.
In the past two weeks, there have been withdrawals of more than $1.2 billion from digital asset investment products, according to a report by CoinShares.
As a crypto investor, I’ve noticed that Bitcoin and Ethereum are the top choices for those looking to withdraw their funds from exchanges. The outflows have been picking up pace lately, with Bitcoin experiencing a significant amount of selling pressure since its price failed to hold above the $71,000 mark. Meanwhile, Ethereum has also seen a spike in outflows as investors may be taking profits or moving their funds to other DeFi platforms.
Bitcoin, Ethereum see over $688 million in outflows
Based on the information given in CoinShares’ recent weekly report, institutional investors have displayed a bearish stance for the second week in a row, leading to withdrawals of approximately $584 million from crypto exchange-traded products (ETPs). The majority of these outflows occurred in the US market.
Approximately $630 million was withdrawn from Bitcoin ETPs (Exchange-Traded Products), representing the largest outflow in this category. An additional $58 million was taken out of Ether products, resulting in a combined total outflow for Bitcoin and Ether exceeding $688 million.
“James Butterfill, head of research at CoinShares, expressed the view that this development might be a response to investor doubts about the Federal Reserve’s planned interest rate reductions in 2023.”
He noted that these outflows highlight the correction that’s underway in the market.
Low volumes as spot Bitcoin ETFs record outflows
As a researcher studying digital asset investments, I’ve observed that the past week saw the lowest trading volumes for investment products since the launch of multiple spot Bitcoin ETFs following the SEC’s approval in January. The total volume last week was a mere $6.9 billion based on available reports.
Last week, American Bitcoin Exchange-Traded Funds (ETFs) experienced withdrawals totaling over $544 million. Bitfinex analysts attributed this trend not to shifting investor sentiment but to “arbitrage adjustments.”
As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin’s price dipped below the $62,000 mark on Monday. This decline can be attributed to two main factors. Firstly, investors and traders reacted negatively to an announcement from Mt.Gox stating that creditor repayments will commence in July. Secondly, miners have been selling Bitcoin, adding further downward pressure to the price.
As a crypto investor, I’ve noticed that Ethereum’s price has dipped below the $3,200 mark in anticipation of possible approvals for Ether spot Exchange-Traded Funds (ETFs) coming up for a vote next week.
Solana, Litecoin see inflows
As an analyst, I’ve observed that while Bitcoin (BTC) and Ethereum (ETH) experienced significant outflows, there were intriguing signs of investment activity in the markets for Solana (SOL), Litecoin (LTC), and Polygon (MATIC).
According to a recent report by CoinShares, some alternative cryptocurrencies experienced inflows, while Bitcoin and Ethereum saw outflows. This shift occurred following substantial losses in the crypto sector in the past few weeks, resulting in many altcoins currently experiencing more than a 10% decrease over the last seven days.
Solana and Litecoin are both 11% down in this time frame, while Polygon has shed over 8%.
Despite its weakness, Solana attracted $2.7 million in investments. In comparison, Litecoin and Polygon saw inflows of $1.3 million and $1 million respectively.
Inflows amounted to $98 million for multi-asset products, indicating that some investors might view the current downturn in the altcoin market as a potential buying chance, according to Butterfill’s observation.
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2024-06-24 19:06