NFT & ICO Calendar

    Crypto Funds Experience Fifth Week of Losses as $LTC and $XRP Gain Investor Attention

    Cryptocurrency investment products have faced a challenging period as institutional investors continue to withdraw funds, marking the fifth consecutive week of outflows.

    The total cumulative amount withdrawn now stands at $232 million, resulting in a 0.7% decrease in total assets under management.

    Declining Transaction Volume and Trading Volumes

    CoinShares’ latest Digital Asset Fund Flows report reveals that cryptocurrency investment product transactions amounted to $900 million over the past week, a significant 40% decline from the year’s average.

    Furthermore, trading volumes across trusted exchanges in the broader market hit a new low since late 2020, reaching just $20 billion for the week.

    Bitcoin Outflows and Negative Sentiment

    Bitcoin, the leading cryptocurrency, has been at the center of negative sentiment, experiencing outflows of $33 million over the past five weeks.

    This trend of outflows also extends to short-bitcoin investment products, which have seen minor outflows of $1.3 million.

    In total, both long and short investment products have witnessed outflows totaling $235 million during this period.

    The reasons behind this negative sentiment are subject to speculation among analysts.

    Some attribute it to regulatory concerns and market volatility, while others point to broader macroeconomic factors influencing investor sentiment.

    Ltc Price
    LTC Price

    Altcoins Buck the Trend

    In a surprising turn, altcoins, which include cryptocurrencies other than Bitcoin, have managed to buck the trend, except for Ethereum, which reported an outflow of $1 million.

    However, altcoins like Avalanche and Litecoin saw inflows of $700,000 and $300,000, respectively.

    Blockchain Equity ETFs Experience Minor Outflows

    Blockchain equity ETFs, investment funds that track a basket of stocks from blockchain-based companies, recorded their second consecutive week of minor outflows, with a reduction of $2 million last week.

    Potential Bitcoin Downturn and Tether’s Bitcoin Investment

    According to Mike McGlone, senior macro strategist at Bloomberg Intelligence, there is potential for a significant Bitcoin downturn that could see the cryptocurrency’s price drop back to $7,000.

    In the midst of this challenging market environment, Tether, the company behind the leading stablecoin USDC, has made a strategic decision to invest a significant portion of its operating profits into Bitcoin.

    Tether plans to consistently allocate up to 15% of its net realized operating profits toward purchasing Bitcoin (BTC), highlighting its confidence in the digital asset.

    Despite the ongoing outflows from cryptocurrency investment products, the market continues to evolve, and investors closely monitor the various factors influencing the sentiment and behavior of institutional players.

    Glenn Austin
    Glenn Austin
    Glenn's fascination with cryptocurrencies was ignited during the early days of Bitcoin, and he has since immersed himself in the study and analysis of various blockchain technologies.

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