Friday, June 2, 2023

Bitcoin, Ethereum in loss, AVA and Lite gain

Digital asset funds registered outflows for the fifth week in a row. Meanwhile, the space lost another $32 million in the past seven days. The leading cryptocurrency, Bitcoin (BTC), dominated with outflows of $33 million.

Bitcoin funds saw an outflow of $33 million last week

It was another week of withdrawals in digital asset funds. This comes as the industry experiences increasing regulatory pressure. Digital asset mutual funds posted outflows of $32 million over the past week, completing the fifth consecutive week of declining sentiment. This is according to the latest CoinShares Digital Asset Fund report.

The report notes that $232 million, representing 0.7% of total AUM (assets under management), has left the market since mid-April. Meanwhile, the leading cryptocurrency dominated outflows with $33 million withdrawn from BTC funds during the past week.

Germany recorded the largest number of departures, accounting for 73% (or $24 million) of the total. The United States and Switzerland followed with $5 million and $3.3 million, respectively. Smaller figures came from Brazil and Canada at $1.3 million and $2.2 million, respectively.

BTC short products also saw withdrawals

Similarly, bitcoin short products saw a modest outflow of $1.3 million. CoinShares said these investment products have seen outflows totaling $235 million over the past five weeks. He added that it is not yet clear why long and short products maintain coordinated negative sentiment.

While Ethereum products also saw outflows of $1 million, other altcoins including Litecoin and Avalanche saw inflows of $0.3 million and $0.7 million, respectively. Remember, the last week of January saw a 6-month high inflows into digital asset funds: $117 million. This comes as the cryptocurrency market skyrocketed in early 2023.

Bitcoin is ready for a bearish wave

Digital asset fund flow measures the movement of cash in and out of investments. In the meantime, they can be an influential indicator of how institutional players move their money. Inflows indicate optimism among investors, while outflows indicate investor fear of upcoming market trends.

In this context, outflows of $232 million in the last five weeks indicate caution among institutional investors. Bitcoin sentiment is likely to turn bearish over the next several sessions. Invezz.com shows that bitcoin is trading at $26,782.56, down 0.42% over the past day.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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