As a seasoned crypto investor with a few years under my belt, I’ve seen my fair share of market volatility. But the recent trend of consecutive weekly outflows from digital asset investment products, particularly Bitcoin (BTC), has me concerned. The industry-wide outflows of $435 million in one week mark the highest since March, and a large percentage of that is coming from the US market.
As a financial analyst, I’ve noticed that several digital asset investment products have experienced withdrawals for the third week in a row. Among these, Bitcoin (BTC), the foremost cryptocurrency, is showing the most notable decline in inflows.
As a crypto investor, I’ve noticed some significant changes in the digital asset ecosystem over the past week. The outflows from spot crypto ETFs have reached a staggering $435 million, which is the largest amount since March. It appears that the enthusiasm and hype surrounding these funds, particularly after the first approval of a spot Bitcoin ETF, has waned noticeably.
Approximately forty-three percent of the total inflow, amounting to $388 million, originates from the US, while the country’s Year-to-Date (YTD) contributions stand impressively high at $13.6 billion.
As a crypto investor, I’ve noticed that exchange-traded products (ETPs) have been taking a hit due to the prevailing bearish market sentiment. The trading volume for these products has seen a substantial decrease.
Explicitly, ETP trading volume went from $18 billion to $11.8 billion in one week. For a very long time, spot Bitcoin ETFs like BlackRock’s IBIT have managed to extend its streak of inflows, but it was abruptly interrupted after 71 days in the past week by outflows, suggesting a notable drop in demand. Some others, including Grayscale’s GBTC, equally registered outflows.
Grayscale sees outflows, BTC price plunge
Over the last week, I’ve witnessed a significant decline in Bitcoin’s price. It hit a low of $64,000, which was a stark contrast to its previous highs. The coin has continued to slide further, dropping by approximately 6%. Consequently, Bitcoin is now trading at around $62,461.12 on the market. This downturn has raised concerns among short-term investors, who are starting to question their investment decisions.
As an analyst, I’ve noticed that Grayscale’s spot Bitcoin ETF has been spearheading the outflows recently, with a record low of $440 million in the past nine weeks. Despite this perceived decrease in demand, new Bitcoin issuers have managed to drive inflows into the niche. Approximately two weeks ago, these inflows peaked at $256 million, but they dropped slightly to $226 million last week.
The significant withdrawals from Bitcoin-associated investment products have led to a decline in altcoins’ values. Among them, Ethereum (ETH) is experiencing an equivalent surge in outflows, whereas other altcoins such as Solana (SOL), Litecoin (LTC), and Chainlink (LINK) are still receiving inflows worth $4 million, $3 million, and $2.8 million respectively.
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2024-04-29 16:13