Recent data from Coinshares has revealed that digital asset investment products encountered a significant challenge as outflows reached a total of $59 million in the past week, contributing to a cumulative outflow of $294 million in recent times. Notably, Bitcoin (BTC) bore the brunt of these digital asset outflows, experiencing outflows amounting to approximately $69 million. Moreover, short-Bitcoin products saw their highest weekly inflow since March 2023, with a total of $15 million.
Taking a Closer Look at the Outflow Report
The report also indicated that the prevailing negative sentiment extended to blockchain equities, which witnessed total outflows amounting to $10.8 million. This marks the fifth consecutive week of outflows in this sector, highlighting the ongoing market uncertainty.
In terms of providers, ETC Issuance GmbH recorded the highest weekly outflows, totaling $23 million, followed by providers like Purpose Investments Inc ETF and ProShares ETFs/USA, with outflows of $17 million and $13.5 million, respectively.
Analyzing the outflows by asset, Bitcoin led the way with weekly outflows of $68.9 million, followed by Ethereum, which saw outflows of $4.8 million. On a month-to-date (MTD) basis, the outflows across all assets amounted to $62.9 million.
What Lies Ahead for Cryptocurrencies?
The report also noted that there were inflows into short investment products, signaling that investor sentiment remains cautious within this asset segment. According to market experts, concerns surrounding the regulation of digital assets and the recent strength of the U.S. dollar may have weighed on sentiments.
Additionally, trading volumes exhibited a 73% decline in the past week, dropping to a mere $754 million compared to the previous week.
Meanwhile, investors appear to be observing the market cautiously from the sidelines, particularly in anticipation of crucial data releases from the U.S. Federal Reserve. This week, several important data points, including U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data for inflation, are expected to be unveiled.
Furthermore, recent concerns stemming from reports suggesting that FTX is seeking authorization to liquidate assets valued at $3.4 billion, including SOL, FTT, BTC, and ETH, may have dampened sentiments. This development has exerted significant selling pressure on altcoins, especially SOL tokens, leaving investors anxious about the future performance of the market.