Home Business Crypto Market Draining: Over $100 Million Outflows

Crypto Market Draining: Over $100 Million Outflows

This week we saw a significant crypto investment outflow of $107 million. The vast majority of investors chose to sell Bitcoin (BTC), resulting in a total outflow of $111 million.

When cryptos experience an outflow, it means that over a period of time (a week in this case) more money is withdrawn from these investment products than is invested in them. A drain can indicate a number of things. Investors may decide to sell their investments to lock in profits or to reduce risk if market confidence wanes. The increased supply of the asset in the market can then cause its price to fall, especially if demand does not increase proportionately.

Trading volume has decreased

Weekly trading volume is also down, down 36% from the year-to-date average. The outflows were primarily concentrated in two ETP providers. ETP stands for Exchange traded product These are exchange-traded products that offer investors the opportunity to invest in different asset classes such as stocks, bonds, commodities or in this case digital assets such as cryptocurrencies. German and Canadian ETP providers saw outflows of $71 million and $29 million, respectively.

Altcoins outperform Bitcoin

bee altcoins appears to be a reverse trend. Ethereum (ETH), for example, has held up remarkably well against Bitcoin. Vitalik Buterin’s network saw better-than-expected outflows of $6 million this week, accounting for just 5.5% of BTC outflows. In fact, Solana recorded $9.5 million in inflows, which has been slowly rebounding since the crash crypto exchange ftx.

Other altcoins like XRP and Litecoin (LTC) also saw inflows, albeit slightly smaller ones at $0.5 million and $0.46 million, respectively. In the case of XRP, this appears to be related to Ripple’s gains in the US securities lawsuit Securities and Exchange Commission (SEC). Litecoin, on the other hand, successfully completed its halving this month.

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