Asset inflows into digital currency products have dropped from $ 79 million to $ 21 million in the last week, according to a new report from CoinShares. This is the lowest value since October 2020. Investor interest in funds has declined along with the emergence of a sideways trend in the bitcoin market, due to which the price of the cryptocurrency remains between the $ 50,000 and $ 60,000 levels.
“Investor interest in digital assets has declined in recent weeks, while volatility has remained elevated and the market has been in a sideways trend,” CoinShares said. – We have recently witnessed a significant decrease in inflows, and in some cases even outflows. We believe that this is due to profit-taking by investors that have been formed over several years. ”
Separately, the company notes that the decline in investment is observed in the United States, while in Europe and Canada, the figure remains relatively constant. Trading volumes for investment products based on digital assets also declined to $ 788 million per day against the 2021 average of $ 900 million.
Bitcoin continues to attract the greatest interest from investors, however, given the market capitalization, Ethereum is in the lead – in its case, inflows amount to $ 5 million.
Overall, Bitcoin posted a 4.8% recovery this Tuesday and is trading at around $ 57,600 at time of publication. At the same time, Bitcoin’s 90-day correlation with the S&P 500 Index has dropped to zero. The stock market is experiencing a period of increased volatility after the forced liquidation of more than $ 20 billion of positions associated with the Bill Hwang family foundation.
“We continue to receive reports of primary broker liquidations on Wall Street. In terms of cryptocurrencies, we’ve seen an outflow of 208,800 BTC ($ 11.05 billion) from Coinbase over the past four months. This is a bullish sign for Bitcoin and the cryptocurrency market, ”said Amber Group partner Annabel Huang.
“The outflow of funds from exchanges intensified this week, indicating that market participants are moving cryptocurrency to cold storage,” – noted in the TradeBlock company.
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