http://jaberwalk.victoryc.hop.clickbank.net/
Ad
The crypto industry has yet to exit a period of heightened volatility as asset outflows remain the dominant market trend.
Despite its slowly rising price, Bitcoin (
$0.00 ) saw outflows for the third week in a row. Data from CoinShares showed that the outflows totaled $12 million last week — while inflows reached $10 million.
Graph showing the weekly crypto asset flow in U.S. dollars (Source: CoinShares)
While the $2 million in outflows isn’t noteworthy, the amount of inflows is. The entirety of the $10 million in inflows was into digital asset investment products shorting Bitcoin ( $0.00 ) .
Graph showing the weekly crypto asset flows by asset in U.S. dollars (Source: CoinShares)
Ethereum (
$2,429.88 ) remained unscathed — seeing only $200,000 of outflows in the past week — while minor inflows were seen in Polygon (MATIC), Solana (SOL), and Cardano (
$0.00 ) (ADA).
Chart showing flows by asset in U.S. dollars (Source: CoinShares)
The rise in short- Bitcoin ( $0.00 ) inflows can be attributed to increased negative sentiment in the U.S. Investors in the country have become increasingly nervous following the coveted FOMC meeting last week, as the Federal Reserve released stronger-than-expected macro data.
Chart showing flows by exchange country in U.S. dollars (Source: CoinShares)
The vast difference between the outflows seen in the U.S. and the rest of the world can be attributed to the U.S. market’s sensitivity to regulatory crackdowns. Less regulated markets are less likely to see significant outflows or an increase in short positions following announcements or enforcement from government agencies.
This is evident in blockchain stocks — a regulated product available to investors in the U.S. and Canada. Negative sentiment also hit them, leading to $7.2 million in outflows.
Since reaching their peak in November 2021, publicly-listed blockchain companies have become increasingly sensitive to broader market movements. Most publicly-listed blockchain companies are focused on growth — meaning that even the slightest changes in interest rates leave them vulnerable and prone to volatility.
Chart showing the flow by blockchain equity ETPs (Source: CoinShares)
Journalist at CryptoSlate
Armed with a classical education and an eye for news, Andjela dove head deep into the crypto industry in 2018 after spending years covering politics.
Connect your wallet, trade with Orion Swap Widget.
Directly from this Widget: the top CEXs + DEXs aggregated through Orion. No account, global access.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
