Bearish Market Sentiment Accelerates Cryptocurrency Outflows
The cryptocurrency market is down by more than 20% in the last 7 days. The overall market cap of digital currencies lost nearly $300 billion within a single week. Large crypto investors have started adjusting their investment portfolios amid the recent bearish market sentiment.
According to the latest digital asset fund flows report published by CoinShares, the cryptocurrency investment products saw outflows worth $79 million last week, a third consecutive week of digital asset outflows. CoinShares mentioned that the recent weekly numbers indicate the longest bearish sentiment in crypto investment products since 2018.
Outflows were mainly focused on Bitcoin as more than $89 million worth of investment left BTC-related products during the last week. The world’s largest cryptocurrency saw its sixth consecutive week of outflows.
“Bitcoin outflows now total US$487m this year representing 1.6% of assets under management. Sentiment remains mixed as evidenced by some providers seeing inflows while others continue to see outflows. Ethereum, the world’s second-largest cryptocurrency, saw minor outflows of US$1.9m, combined with outflows from the previous week now totaling US$14.6m. As a percentage of assets under management, it represents 0.14%, implying most of the negative sentiment has been focused on Bitcoin,” CoinShares mentioned in the report.
During the market crash of 2018, the cryptocurrency investment products saw outflows for seven consecutive weeks.
Ethereum and Cryptocurrency Market
ETH remained the worst-performing cryptocurrency among the top 5 during the last 7 days as its price plunged approximately 26%. CoinShares highlighted the impact of ETH’s price action on its trading volume. “Weekly trading volumes in Ethereum investment products have fallen by 80% since the May highs. Bucking the trend last week were multi-asset investment products which saw inflows of US$10m last week. Year-to-date net inflows now total US$351m, representing 16% of assets under management,” CoinShares added.
The total market cap of digital currencies currently stands at around $1.3 trillion, down by more than 7% in the last 24 hours.
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