Bitcoin Faces 5th Consecutive Week Of Outflows, Reflecting Poor Sentiment

According to the latest CoinShares Digital Asset Fund Flows Weekly Report, Bitcoin has experienced a significant decline in sentiment as it faces its fifth consecutive week of outflows. 

The report reveals that digital asset investment products witnessed a total outflow of $32 million, bringing the total outflows over the past five weeks to a staggering $232 million.

The bulk of the negative sentiment was concentrated in Bitcoin, which accounted for outflows of $33 million, a trend that has persisted over the last five weeks. 

Altcoin Inflows Amid Bitcoin’s Negative Sentiment

This sustained decline in Bitcoin investment indicates a lack of confidence among investors. In contrast, except for Ethereum, altcoins observed inflows, with notable mentions of Avalanche and Litecoin.

The overall outflows from digital asset investment products reached $32 million, accounting for 0.7% of total assets under management. Furthermore, the weekly trading volumes stood at $900 million, representing a 40% decrease compared to this year’s average volume. 

Additionally, volumes in the broader market on trusted exchanges plummeted to their lowest point since late 2020, with only $20 billion traded throughout the week.

A closer look at regional trends reveals that Germany experienced the largest outflows, amounting to $24 million, constituting 73% of all outflows. 

The United States and Switzerland followed suit with $5 million and $3.3 million, respectively. However, Brazil and Canada witnessed minor inflows of $1.3 million and $2.2 million, respectively.

The negative sentiment surrounding Bitcoin is not limited to long-investment products alone. Short-bitcoin also suffered minor outflows of $1.3 million for the week. 

Consequently, the cumulative outflows for long and short-investment products have reached a staggering $235 million over the past five weeks. It remains unclear why there is such a synchronized negative sentiment towards both investment products.

Meanwhile, altcoins, apart from Ethereum, experienced inflows during this period. Avalanche and Litecoin stood out, with inflows of $0.7 million and $0.3 million, respectively. It suggests that investors are diversifying their portfolios and exploring alternative digital assets in the face of Bitcoin’s decline.

In blockchain equity ETFs, minor outflows of $2 million were observed for the second consecutive week. This trend reflects the broader sentiment of caution in the digital asset market.

However, the CoinShares report sheds light on the current state of the cryptocurrency market, indicating a persistent decline in Bitcoin sentiment over the past five weeks. As investors navigate this challenging landscape, they continue to explore alternative digital assets in search of potential opportunities.

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