Bitcoin-based crypto investments saw another week of breakouts from what was Unhappy week for Bitcoin and other cryptocurrencies. Bitcoin investors, in particular, were dismayed as they watched the price of the commodity plummet in the world during the week, it currently falls below $60,000. According to the latest entry data from CoinShares, this correction is also flowing into crypto investment products. Notably, crypto investment products registered an outflow of $584 million last week to extend the exit to $1.2 billion in two weeks.
A Real Fix Is Going On With Bitcoin
According to the CoinShares report, most of the outflows were focused on Bitcoin, with crypto investment products registering $630 million last week. As the report noted, this emerging sentiment can be largely attributed to growing pessimism among crypto investors over the Fed’s interest rate cuts this year. Furthermore, the ongoing outflows suggest that a true correction may be underway for Bitcoin.
Related Reading
However, while this correction may continue, it may not translate into an overall negative sentiment for Bitcoin. Such considerations are made in conjunction with the outflow of $1.2 million in short Bitcoin products, suggesting that most investors do not believe that Bitcoin will continue to decline in the long run.
By region, the US saw the largest outflow, amounting to $475 million. Interestingly, most of these recorded outflows came from the trading of Spot Bitcoin ETFs in the US. According to the data, Spot Bitcoin ETFs proved they came out every day last weekresulting in the lowest trading volume of $6.9 billion in investment products since its launch in January 2024. Outflows were also seen in Canada, Germany and Hong Kong at $109.3 million, $23.8 million and $19.3 million, respectively.
Ethereumwhich also came from an unpleasant week of price action, was not left without negative sentiments and registered $58 million in outflows, its largest weekly outflow in 2024.
Bucking the trend of breakouts, many altcoin products saw impressive weekly inflows despite falling prices in the local market. This was led by multi-asset products, which saw inflows of $98 million. Solana, Litecoin and Polygon also had revenues of $2.7 million, $1.3 million, and $1 million, respectively.
More Price Adjustments Ahead?
This week will be crucial in determining whether Bitcoin and other cryptocurrencies will continue to experience price corrections. Time will tell if the latest volatility is a sign of a further decline or a temporary dip. However, the price action seen in the last 24 hours suggests that a correction is possible it is nearing its end.
Related Reading
Bitcoin, Ethereum, Solana, and many other cryptocurrencies have risen sharply again, showing significant price increases over the past day. If kept in the marketplacethis upward trend may lead to increased income in crypto investment products by the end of the week.
The featured image was created with Dall.E, a chart from Tradingview.com
Source link
