Last week marked a significant trend as crypto funds, including those holding Bitcoin, faced significant outflows, amplifying investor concerns. Even though market momentum has weakened for several cryptocurrencies, a few resilient assets have held up.
Digital asset investment products saw a decline for the fifth consecutive week. Last week alone, $53.5 million in outflows were recorded, totaling nearly half a billion outflows over the past nine weeks.
Market Leaders – Bitcoin and Ethereum are suffering the consequences
Bitcoin (BTC), often nicknamed the “king of cryptocurrencies”, paid the price for these outflows. Around 85% of the outflows came from Bitcoin funds, which translates to a decrease of $45 million last week.
This happened in the middle Bitcoin is struggling to recover some of its earlier losses. The cryptocurrency rose from just over $25,000 early last Monday to end the week above $26,000 on Saturday. At the time of writing, Bitcoin is trading at $27,117, an increase of 8.3% over the past 7 days.
Additionally, the exit scenario was not particularly rosy for Ethereum (ETH) either. According to the report, despite its traditionally attractive investment fundamentals and booming demand for its staking yield, ETH also saw outflows reaching $4.8 million. Other notable assets like BNB and MATIC also saw minor outflows.
As James Butterfill, head of research at asset manager CoinShares, highlighted in his recent report, the last two months have been particularly difficult, with eight of the previous nine weeks reporting capital outflows.
Yet, according to the report, the United States appears to be the main catalyst for this negative sentiment, accounting for 77% of outflows. Other regions, such as Germany, Canada and Sweden, have not been immune, seeing significant capital outflows over the past week.
Year-to-date, net inflows have fallen to a paltry $51 million after this wave of exits, a surprising revelation given the optimistic start to 2023.
Solana, Cardano and XRP: the positive side
Solana, Cardano and XRP have emerged as beacons of hope in this seemingly gloomy context. Unlike their counterparts, these assets saw inflows: Solana led the pack with $700,000, followed by Cardano and XRP with inflows of $400,000 and $100,000, respectively.
Their performance offers a glimmer of optimism in an otherwise challenging digital asset market, indicating that pockets of resilience and investor confidence remain.
Additionally, trading volume jumped 42%, on the more positive side, from the previous week’s $754 million to $1 billion.
While blockchain stocks also felt the brunt of their sixth straight week of outflows, the increase in trading volume indicates the active participation and engagement of traders in the crypto sphere.
Notably, Solana and Cardano made more profits than XRP over the past 24 hours, with the former up 5.5% and the latter 2.8%; XRP only recorded a 1% profit over the same period.
Featured image from iStock, chart from TradingView
Last week marked a significant trend as crypto funds, including those holding Bitcoin, faced significant outflows, amplifying investor concerns. Even though market momentum has weakened for several cryptocurrencies, a few resilient assets have held up.
Digital asset investment products saw a decline for the fifth consecutive week. Last week alone, $53.5 million in outflows were recorded, totaling nearly half a billion outflows over the past nine weeks.
Market Leaders – Bitcoin and Ethereum are suffering the consequences
Bitcoin (BTC), often nicknamed the “king of cryptocurrencies”, paid the price for these outflows. Around 85% of the outflows came from Bitcoin funds, which translates to a decrease of $45 million last week.
This happened in the middle Bitcoin is struggling to recover some of its earlier losses. The cryptocurrency rose from just over $25,000 early last Monday to end the week above $26,000 on Saturday. At the time of writing, Bitcoin is trading at $27,117, an increase of 8.3% over the past 7 days.
Additionally, the exit scenario was not particularly rosy for Ethereum (ETH) either. According to the report, despite its traditionally attractive investment fundamentals and booming demand for its staking yield, ETH also saw outflows reaching $4.8 million. Other notable assets like BNB and MATIC also saw minor outflows.
As James Butterfill, head of research at asset manager CoinShares, highlighted in his recent report, the last two months have been particularly difficult, with eight of the previous nine weeks reporting capital outflows.
Yet, according to the report, the United States appears to be the main catalyst for this negative sentiment, accounting for 77% of outflows. Other regions, such as Germany, Canada and Sweden, have not been immune, seeing significant capital outflows over the past week.
Year-to-date, net inflows have fallen to a paltry $51 million after this wave of exits, a surprising revelation given the optimistic start to 2023.
Solana, Cardano and XRP: the positive side
Solana, Cardano and XRP have emerged as beacons of hope in this seemingly gloomy context. Unlike their counterparts, these assets saw inflows: Solana led the pack with $700,000, followed by Cardano and XRP with inflows of $400,000 and $100,000, respectively.
Their performance offers a glimmer of optimism in an otherwise challenging digital asset market, indicating that pockets of resilience and investor confidence remain.
Additionally, trading volume jumped 42%, on the more positive side, from the previous week’s $754 million to $1 billion.
While blockchain stocks also felt the brunt of their sixth straight week of outflows, the increase in trading volume indicates the active participation and engagement of traders in the crypto sphere.
Notably, Solana and Cardano made more profits than XRP over the past 24 hours, with the former up 5.5% and the latter 2.8%; XRP only recorded a 1% profit over the same period.
Featured image from iStock, chart from TradingView
