Outflows Rock Bitcoin As Institutional Investors Pull The Plug, More Downside Coming?
June 28 2022 - 1:00PM
NEWSBTC
Outflows have been the order of the day since the price of
cryptocurrencies such as Bitcoin had begun to crash. The same
sentiment had spread through individual as well as institutional
investors, leading to massive sell-offs in the space. Despite the
price of bitcoin recovering in recent times, it seems that the
sellers are not done just yet as outflows had ramped up over the
last week. $453 Million Leaves Bitcoin Bitcoin had been seeing a
reversal trend with inflows coming in for the prior week. However,
this has only been short-lived as outflows have continued to rock
the digital asset. For the last week, CoinShares reports that
bitcoin had led the outflow trend and the net outflows had come out
to $453 million for the digital asset. It is one of the largest
outflows ever recorded for the digital asset and has wiped out the
majority of inflows on a year-to-date basis. Related Reading
| Bitcoin May Not Reclaim All-Time High For Another Two Years,
Binance CEO This comes as bitcoin’s price had continued to
fluctuate around $20,000 over the last week. It was expected that
the low prices would trigger more inflows into the market for the
past week but the opposite has been the case. The total assets
under management (AuM) for bitcoin now sits at $24.5 billion, the
lowest it has been in more than a year. BTC recovres above
$21,000 | Source: BTCUSD on TradingView.com Its short-bitcoin
counterpart had gone a different path this week where inflows had
been the order of the day. The $15 million that flowed into it is
said to be a result of the first US-based short investment product
which launched last week. Given that the older short-bitcoin
investment products had recorded outflows for the same time frame,
all fingers point towards the launch. Ethereum also saw inflows, a
first in three months. It came out to a total of $11 million
flowing into the altcoin after suffering 11 weeks of outflows.
North American Outflows Grow Worse The outflows have been localized
to one specific region and that is the North American corner of the
market. CoinShares notes that the majority of the outflows had come
from Canadian exchanges. Specifically, one provider. Most of the
outflows had been seen on 17th June but did not show up until last
week. It shows that these sell-offs had been a trigger for
bitcoin’s decline to $17,700. Related Reading | Crypto
Liquidations Settle As Bitcoin Recovers Above $21,000 Digital asset
investment product outflows were just as large with $423 million
flowing out of the market, a new record for the space. However,
given the lag that led to the trades from the Canadian exchanges
updating late, it is important to know that these outflows were not
from last week alone. When these outflows are removed and marked to
their correct time frames, it shows that inflows of $70 million had
been recorded by other providers. The last time record outflows
were seen was at the start of the year when $198 million had left
the market in a single week in January. The outflows recorded for
last week have surpassed this by more than 100%, although the ratio
to the assets under management remains low compared to the bear
market outflows of 2018 where outflows had reached as high as 1.6%
of total AuM. Featured image from MARCA, chart from
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