Bitcoin investors flee, outflow for 8 weeks in a row

Crypto investment products in which investors can invest through traditional avenues are struggling. From a new one update CoinShares shows that capital has once again flown out. It is the 8th week in a row that investors have withdrawn their investments.

$417 million from crypto funds

Last week, money again flowed out of the big funds. With the outflow of USD 88 million last week, the total of the past two months comes to USD 417 million, which is worth approximately EUR 386 million.

Funds focused on bitcoin (BTC) took the biggest hit. A total of $ 51.6 million flowed out there last week. Ethereum (ETH) funds saw $35.6 million flow out.

Remarkably enough, there were also some green dots, although they are very small dots. Litecoin (LTC) funds just saw $700,000 in. Solana (SOL) and ripple (XRP) funds welcomed $300,000 and $500,000 respectively.

Crypto funds have seen capital outflow for 8 weeks in a row. Source: CoinShares.

With the 8th week in a row with outflows, the record of 12 weeks from April to June last year is getting closer.

Rising interest rates worry bitcoin investors

In an accompanying blog post, James Butterfill, head of research at CoinShares, explains the numbers. According to his team, the outflows are mainly related to rising interest rates:

“As we did last year, we think the outflows are related to monetary policy, and that there is currently no clear end to interest rate hikes, leading investors to be cautious.”

The coming days will be extremely important for cryptocurrencies like bitcoin. This is how the new US inflation figures are announced. These figures will then influence the choice of the US central bank for a further rate hike.

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However, there are signs here and there that the central bank may want to cut interest rates as early as the end of this year. ING researchers write this in a recently published report.

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