Market Turbulence Continues as Crypto Outflows Reach $1.2 Billion
Crypto
MARKET_WATCH
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As digital asset markets continue to navigate turbulence, the latest report from Coinshares outlines significant capital outflows, marking a stark shift in investor sentiment. Authored by lead analyst James Butterfill, the findings highlight a consecutive week of outflows totaling $584 million, suggesting a cautious outlook on the prospects of interest rate cuts this year.
Coinshares Report Reveals Sustained Outflows, Signaling Broader Crypto Market Correction
According to James Butterfill of Coinshares, digital asset investment products experienced their second straight week of outflows, with a total reduction of $1.2 billion. This trend reflects growing investor pessimism, triggered by the Federal Reserve’s current monetary stance.
The United States bore the brunt of these outflows, shedding $475 million, while Canada, Germany, and Hong Kong also saw notable reductions. Conversely, Switzerland and Brazil reported inflows, hinting at a more mixed global reaction to market conditions.
Butterfill’s analysis said the focus of the outflows centered around bitcoin (BTC), which alone accounted for $630 million. Despite this, there has been no significant increase in short positions, indicating that negative sentiment has not translated into bearish betting against the asset. Meanwhile, ethereum (ETH) also faced a downturn with $58 million in outflows.
Butterfill’s report points out that, despite overall market struggles, certain altcoins like solana (SOL), litecoin (LTC), and polygon (MATIC) received fresh investments, suggesting some see the price dips as investment opportunities. In contrast to the broader negative trends, multi-asset products emerged as a bright spot, with $98 million flowing in.
Source : Bitcoin News - Jun 24, 2024