As a seasoned crypto investor with a decade-long journey through the digital asset landscape, I find myself navigating yet another turbulent phase in this rollercoaster ride we call cryptocurrency trading. The latest weekly outflows of over $700 million, as reported by CoinShares, reflect a familiar pattern that has tested my nerves and resilience time and again.
Based on data from cryptocurrency exchange-traded product (ETP) provider CoinShares, it appears that the crypto market experienced its biggest weekly withdrawals since March, as prices continued to drop.
Last week, crypto investment products experienced withdrawals totaling over $725 million, which is the largest such withdrawal since March.
According to a recent study published on September 9th, James Butterfill, the head of research at CoinShares, explained this trend as a result of robust economic data from the preceding week that intensified speculation about a possible 0.25% reduction in interest rates by the U.S. Federal Reserve.
Markets are eagerly waiting for the Consumer Price Index inflation report due on Tuesday. If the inflation rate turns out to be lower than anticipated, there’s a higher chance of a 0.5% interest rate reduction.
James Butterfill, CoinShares head of research
The information indicates that the majority of withdrawals occurred in the U.S., totaling approximately $721 million, while Canadian products experienced outflows worth around $28 million. However, European markets displayed a more optimistic outlook, with Germany and Switzerland experiencing inflows of about $16.3 million and $3.2 million respectively.
Bitcoin stuck in fear zone
As a researcher, I’ve observed some significant movements within the cryptocurrency market. Bitcoin (BTC) experienced a substantial outflow of approximately $643 million, while there were relatively small inflows of $3.9 million into short-Bitcoin positions. Ethereum (ETH), on the other hand, witnessed an outflow of about $98 million, primarily from the Grayscale Trust, as inflows into exchange-traded funds slowed down. Interestingly, Solana (SOL) was a standout performer with inflows amounting to $6.2 million – the highest among all digital assets under review.
1) Bitcoin experienced a significant decrease in trading volume as daily inflows decreased by 68% from approximately 68,470 BTC to 21,742 BTC, while outflows dropped by 65% from around 65,847 BTC to 22,802 BTC. Data from Alternative indicates that the Crypto Fear and Greed Index reached 26, its lowest level in over a month, suggesting increased investor unease and a more cautious market mentality.
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2024-09-09 16:30