Markets
Investors Withdraw $584 Million From Cryptocurrency Market
The cryptocurrency market is undergoing a significant correction as investors withdrew $584 million from cryptocurrency-related investment products last week, according to the latest report from CoinShares. relationship.
Furthermore, global trading volumes for crypto ETPs have reached the lowest levels since the US Securities and Exchange Commission approved the launch of several commercials Bitcoin exchange-traded funds (ETFs) in January, totaling just $6.9 billion for the week.
This decline continues a trend that began the previous week, when investors withdrew about $600 million, bringing total outflows over the past two weeks to nearly $1.2 billion.
James Butterfill, head of research at CoinShares, commented:
“We believe this is a reaction to investor pessimism about the prospect of interest rate cuts by the Fed this year.”
Bitcoin and the US lead the outflows
Bitcoin investment products saw the most significant outflows, totaling $630 million. ETP Bitcoin experienced six consecutive days of outflows in the US, primarily from Fidelity’s Grayscale Bitcoin ETF and FBTC.
Canada also saw significant outflows from cryptocurrency ETPs, with $109 million being withdrawn. Germany and Hong Kong followed, with outflows of $24 million and $19 million, respectively.
Crypto ETP flows by country (source: CoinShares)
In contrast, Switzerland and Brazil recorded inflows of $39 million and $48.5 million, respectively, helping to offset overall outflows.
Bearish investors also pulled out about $1.2 million from Bitcoin short products.
In the meantime, Ethereum joined the outflow trend, recording its first withdrawals in weeks, totaling about $58 million. That reduced month-to-date flow to about $23 million from $82 million.
Altcoins prove attractive
Despite outflows from the leading digital asset, multi-asset investment products and some altcoins have seen significant inflows.
According to CoinShares, multi-asset products have attracted over $98 million SolanaLitecoin and Polygon received $2.7 million, $1.3 million, and $1 million, respectively.
Butterfill explained that these inflows indicate a new attention from investors towards altcoins. He stated:
“[These inflows] suggest that investors view weakness in the altcoin market as a buying opportunity.”