Since 2017 and 2018, Bitcoin and other cryptocurrencies in the market have experienced the longest-lasting adverse price trend. Since the significant rally of 2021, the overall crypto market has lost $2 trillion. However, despite sporadic increases, cryptocurrency values tend to swing more in the direction of the red lines these months.
Despite a significant market-wide selloff, the digital asset investment products saw a small outflow of $9 million last week. Bitcoin (BTC) saw withdrawals of $15 million for the third week in a row, while Ethereum (ETH) reported an inflow of $3 million last week, according to CoinShares’ Digital Asset Fund Flow. In light of the planned merger on September 15th, it appears that investors are more bullish on Ethereum than Bitcoin.
According to the research, investments in digital assets lost a mere $9 million last week. Additionally, the volume of digital asset investment products reached $1 billion, which is still down 55% from the year average.
Due to pressure from the crypto market, the analysis shows that investor engagement is now low. The US, Germany and Sweden were the countries with the most outflows. In contrast, Brazilian, Swiss and Australian investors put money into cryptocurrency investment products.
Why are There Withdrawals Happening?
The third week in a row that there have been withdrawals from Bitcoin investment products saw withdrawals of $15 million. Due to the FUD around the Fed’s rate hikes, there is some modest negativity surrounding Bitcoin. However, last week witnessed a little inflow of $0.2 million for short bitcoin. BTC’s price fell down below the 21,000 mark after the most recent bear market rebound failed to keep it above $25,000.
$3 million was invested in Ethereum-related products. This concludes a nine-week streak of $162 million in inflows. The cause of the ongoing flow is improving the merge and its timely communication. On 15 September, Ethereum Core developers pushed for a merge.
Small inflows were seen in the investment products for Cardano (ADA), XRP, and Binance Coin (BNB), among other altcoins. However, Solana (SOL) experienced outflows of $1.4 million for the second week. Institutional investors watch for a rally in the cryptocurrency market. Last week, there were $1.6 million in outflows from the cryptocurrency market for blockchain products.
