As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed my fair share of ups and downs. The recent crypto market crash, particularly the significant outflows from Bitcoin (BTC) investment products, is undeniably reminiscent of past bearish cycles – albeit on a grander scale due to the meteoric rise in prices earlier this year.
In recent history, the cryptocurrency market has experienced a massive downturn. This turmoil has been particularly noticeable in the movement of Bitcoin (BTC), causing quite a stir within the crypto community. It seems that negative feelings about the market are persisting, and the apprehension among investors is growing.
Last week, Bitcoin investment products recorded a withdrawal of approximately $400 million, as reported by CoinShares. Interestingly, this was followed by outflows after five consecutive weeks of inflows. On the other hand, products that bet against Bitcoin (short-Bitcoin) saw inflows totaling $1.8 million for the first time since June.
Sentiment shifts for ETPs
Looking at the big picture, investment products tied to digital assets have entered a bearish trend again. According to CoinShares, there was an outflow of approximately $528 million in these products for the first time in four weeks. Moreover, trading volumes of these exchange-traded products (ETPs) also significantly decreased.
Last week, trading volumes amounted to $14.8 billion, a figure that falls below the usual average. The crypto market’s dip on Friday significantly affected Exchange-Traded Product (ETP) holdings, causing approximately $10 billion to be removed from the total assets under management (AuM). CoinShares indicated that the market downturn may be due to heightened concerns about an impending recession in U.S. markets.
As a crypto investor, I’ve been watching the economic landscape of the U.S. with a cautious eye. The ongoing geopolitical issues are one thing, but the state of employment and the heated discussions surrounding interest rate cuts have left me uneasy. This has led me to tread carefully in my investments, much like others as evidenced by the recent $531 million outflows from ETPs within the U.S. alone. It’s a reminder that market fluctuations can be influenced by a multitude of factors, and it pays to stay informed.
Bitcoin price crashes 15%
Currently, Bitcoin is being exchanged at approximately $51,333 following a 15.76% drop over the past 24 hours. This decline has also resulted in a decrease of 15.65% in its market capitalization, now standing at around $1.01 trillion. Some financial experts are calling this one of the most significant crypto collapses in the last year, with substantial liquidations totaling millions over the past two days.
In the past 24 hours, according to CoinGlass, a combined total of approximately 1.14 billion dollars worth of both long and short crypto positions were liquidated. Within this amount, Bitcoin saw about 395 million dollars in liquidations, and Ethereum had around 362.75 million dollars in liquidations. The current market situation is causing some unease among investors as they wait for potential recovery in the coming days.
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2024-08-05 17:02