Crypto Exodus Drains $584M from Funds

The cryptocurrency investment product market has experienced significant capital outflows in recent weeks, with the trend continuing for the second consecutive week, according to a report from CoinShares.

Bitcoin and major markets lead the outflow

Bitcoin was the hardest hit, with an outflow of $630 million, contributing to a total outflow of $584 million from digital investment products monitored by CoinShares. Over the past two weeks, $1.2 billion in value has been drained from this sector.

The geographical breakdown shows a mixed picture, with the United States experiencing the largest outflow of $475 million, followed by Canada with $109 million. In contrast, Switzerland and Brazil saw inflows of $39 million and $48.5 million, respectively.

The trading volume in ETPs has fallen to its lowest level since the launch of US ETFs in January.

Positive trends at solana and polygon

While bitcoin and ethereum (ETH) saw significant outflows of $630 million and $58 million, respectively, some altcoins, including solana (SOL), litecoin (LTC), and polygon (MATIC), recorded small inflows.

The inflow of $98 million in multi-asset products, which offer exposure to multiple cryptocurrencies, suggests that some investors may be opting for a more diversified strategy in current market conditions.

James Butterfill, head of research at CoinShares, attributed the recent market moves to investor pessimism about the prospects of Fed rate cuts this year, which can have a significant impact on riskier assets like crypto.

The recent bitcoin news has been negative, with the announcement of a possible refund of almost $9 billion worth of bitcoin to creditors of the bankrupt trading platform Mt. Gox leading to a fall in price and a “long squeeze” that liquidated $220 million in long positions in 24 hours. Additionally, outflows from bitcoin ETFs continued, with a net outflow of $174.5 million in one day yesterday, according to Farside data.

Read Also:  Lazarus Hacker Group: Tether Freezes $29.6 Million in Frozen Funds

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here