How crypto market bloodbath triggered outflows over $100M over the past week

Please fol­low and like us:
Pin Share

Just a week can com­plete­ly change the entire out­come in the cryp­tocur­ren­cy mar­ket. A report post­ed on 7 June, revealed that dig­i­tal assets wit­nessed inflows last week despite the bear­ish run. This inflow amount­ed to $100 mil­lion bring­ing the total assets under man­age­ment (AuM) to $39.8 billion.

But, the said inflow didn’t stay for long…

Bleeding heavily…

The cryp­tocur­ren­cy mar­ket is under­go­ing a heavy cor­rec­tion phase that saw the mar­ket quit the ‘Tril­lion’ zone. At press time, the over­all mar­ket stood at the $959.7 bil­lion mark after suf­fer­ing a 14% cor­rec­tion in 24 hours.

As expect­ed, dig­i­tal assets saw out­flows of $102 mil­lion last week as per Coin­Shares’ lat­est Dig­i­tal Asset Fund Flows Week­ly report. Giv­en the neg­a­tive sen­ti­ment across cryp­to, the blog not­ed:

“Dig­i­tal asset invest­ment prod­ucts flows remain chop­py in antic­i­pa­tion of hawk­ish mon­e­tary pol­i­cy, with steady dai­ly out­flows last week totalling US$102m.”

Here’s a graph­i­cal representation:

Source: Coin­Shares

Geo­graph­i­cal­ly speak­ing, the major­i­ty of out­flows focused on the Amer­i­c­as, total­ing $98 mil­lion with Europe see­ing just $2 mil­lion outflows.

Stairway to Hell?

Sure­ly, looks like it.

Bit­coin saw out­flows total­ing $57 mil­lion last week bring­ing month-to-date out­flows to $91 mil­lion. Inter­est­ing­ly, despite these out­flows, short-bit­coin invest­ment prod­ucts also saw minor out­flows total­ing $0.2 mil­lion. Nev­er­the­less, the total AuM stood much low­er at $55 mil­lion com­pared to $27 bil­lion for long-long bit­coin invest­ment products.

Source: Coin­Shares

Accord­ing to the blog, an impor­tant fac­tor led to BTC’s demise:

“What has pushed Bit­coin into a “cryp­to win­ter” over the last 6 months can by and large be explained as a direct result of an increas­ing­ly hawk­ish rhetoric from the US Fed­er­al Reserve.”

Even Terra’s fias­co helped to aggra­vate this grim sce­nario. Any­way, mov­ing on to the alt­coins now…

Ethereum, the largest alt­coin saw anoth­er week of out­flows total­ing $41 mil­lion bring­ing total year-to-date out­flows to $387 mil­lion (4.4% of AuM). Well, ETH saw a con­stant depar­ture in the past as well. One of the rea­sons why the total AuM fell from its peak of $23 bil­lion in Novem­ber 2021 to $8.7 bil­lion today.

That said, Solana (SOL) record­ed a small uptick com­ing in at about $400,000. Where­as, Lite­coin (LTC), Car­dano (ADA) and XRP, each saw $200,000 worth of inflow. But it didn’t real­ly help alt­coins’ fate as the blog assert­ed:

“Aside from Mul­ti-asset invest­ments prod­ucts, which saw US$4.7m of out­flows last week, investors steered clear of adding to alt­coin positions.”

Over­all, it is going to take a sig­nif­i­cant amount of time for cryp­tos to over­come these huge obsta­cles and recover.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *