Rise In Bitcoin Outflows Suggests Institutional Investors May Be Losing Faith In The Asset
22 Agosto 2023 - 9:01PM
NEWSBTC
This year has been marked by significant volatility across the
crypto market, including for Bitcoin, which has seen both gains and
losses over the course of the year. Just a month ago in the middle
of July, Bitcoin crossed over $30,000 and many investors saw this
as the start of another bull run. However, things seem to
have taken a turn, as the price of Bitcoin has plateaued since
then. The asset is currently struggling to find a push in price,
and it would seem this sentiment has flowed into digital asset
funds. According to the weekly report published by digital asset
manager CoinShares, Bitcoin outflows from institutional accounts
have resumed in the past week. Outflows From Digital Asset
Investment Products Outflows from digital asset investment products
have spiked in recent weeks to register a three-week run of
outflows. This would indicate that institutional investors might be
avoiding volatile cryptos. This comes two weeks after a brief
period of inflows, where Ripple’s partial victory in court and
recent US inflation data led to inflows in digital asset
products. Related Reading: Dogecoin Proof Of Stake Discussion
Heats Up As Lead Dev Chimes In However, data shows that outflows
resumed last week, and it appears that the euphoria that followed
Ripple’s partial triumph against the SEC has dissipated. Digital
asset investment products saw $55 million in outflows last week,
with Bitcoin leading the charge with outflows of $42 million. Other
cryptocurrencies like Ethereum registered $9 million outflows,
while Polygon, Litecoin, and Polkadot saw outflows of $0.9 million,
$0.6 million, and $0.5 million, respectively. On the other hand,
XRP and Cardano saw an increase in their respective inflows of $1.2
million and $0.1 million. In terms of region, Canada had the
most outflows of $35.9. million, and Germany followed with $11
million. BTC price falls below $26,000 support | Source: BTCUSD On
Tradingview.com Rise In Bitcoin Outflows Bitcoin outflows from
exchanges suggest big investors may be losing faith in the popular
cryptocurrency. One factor that fueled this outflow is speculations
going around that the SEC might not actually approve applications
for spot Bitcoin ETFs in the US. As a result, total assets under
management (AuM) declined by 10% to close the week at $32.3
billion. Related Reading: Gemini Hits Back At SEC Lawsuit
With Dismissal Filing The speculations come as the SEC has delayed
making a decision on Spot Bitcoin ETF applications multiple times.
Each postponement casts more doubt on whether they will ever
approve one and an outright rejection from the SEC will most likely
lead to the price of Bitcoin falling to $20,000 and digital asset
investment products registering more outflows. At the time of
writing, Bitcoin is trading at $26,053 and is down by 11.09% in a
7-day timeframe. Featured image from Unsplash, chart from
Tradingview.com
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