The last few weeks have seen a disappointing performance for Bitcoin. This has prompted crypto investors to respond. After a couple of weeks of tethering above $20,000, the digital asset’s price had finally fallen below this important technical point, triggering outflows in the market. The market fatigue has continued for the institutional investors over the past week. Although there have been some outflows in recent weeks, these still seem very minimal.
Bitcoin loses $29 million
Bitcoin outflows continued for another week. The outflows of the digital asset have continued for three weeks straight with no sign of an inverse. For the week, $29million was spent on outflows. The week saw bitcoin send the most outflows. Other outflows also occurred.
Short bitcoin saw more inflows, which again speaks to the bearish sentiment among bitcoin investors. The $1 million inflow into BTC short shows institutional investors still have to be cautious about investing in this market, despite not being as large as previously.
This is understandable given the Fed’s economic policy. In a bid to get inflation rates under control, the Fed has taken what is known as a “hawkish” stance, causing investors to cling tightly to capital.
Outflows remain the Order of The Day
Even though bitcoin was the main focus of the week, outflows weren’t just in that currency. Ethereum, the second largest cryptocurrency in terms of market capital, also experienced outflows exceeding $1 million during that time. The digital asset had previously been viewed negatively by investors until the Merge announcement changed that sentiment. It is evident that this bullish sentiment didn’t last for very long.
Outflows from digital asset investments, such as bitcoin, are now in their third week consecutive. The week saw outflows of $27 millions. With a total $26.5 million, the majority of outflows came from three countries: the US, Sweden and Germany.
Interestingly, some minor outflows were found to have flowed into DeFi platforms like Chainlink, Cardano and Uniswap. With a combined $1.2million, most of the inflows were from Brazil.
Market conditions are still difficult despite bitcoin reaching $20,000 again. There is very weak momentum which makes this a seller’s market.
Featured Image from Forbes. Chart by TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…