Key Points
- Crypto investment products experienced a record weekly outflow of $942 million, ending a 7-week inflow streak.
- Bitcoin, Ethereum, and other major cryptocurrencies faced significant withdrawals, while altcoins saw a net inflow of $16 million.
The cryptocurrency market recently recorded a significant weekly outflow of $942 million from investment products. This marks the end of a 7-week streak of inflows that totaled $12.3 billion.
Trade Volumes and ETF Inflows
A report highlighted that the trading volumes for Exchange-Traded Products (ETPs) stood at $28 billion for the week, which is two-thirds of the previous week’s volume. Despite the recent price correction reducing the total Assets Under Management (AUM) by $10 billion, it remained above the previous cycle highs at $88 billion.
Researcher James Butterfill noted that investors’ hesitation after the recent price correction led to smaller inflows into US Exchange-Traded Funds (ETFs). These inflows, totaling $1.1 billion, partly offset the large outflows of $2 billion from Grayscale Investments.
Outflows and Inflows in the Crypto Market
Bitcoin (BTC), the world’s largest cryptocurrency, suffered the most, with outflows amounting to $904 million. Minor withdrawals totaling $3.7 million were seen for short-Bitcoin products, following a more than 10% retracement from Bitcoin’s all-time high. Other major cryptocurrencies like Cardano (ADA), Solana (SOL), and Ethereum (ETH) also experienced withdrawals of $3.7 million, $5.6 million, and $34 million, respectively.
Despite the negative market sentiment, altcoins attracted investor interest, leading to a net inflow of $16 million. Polkadot (DOT) received the most inflows, totaling $5 million, followed by Avalanche (AVAX) at $2.9 million and Litecoin (LTC) at $2 million.
Outflows were not just confined to the US market. Sweden, Switzerland, Hong Kong, and Germany also recorded outflows of $37 million, $25 million, $35 million, and $4 million respectively. However, Brazil and Canada bucked the trend, with inflows of $9 million and $8.4 million, respectively.
Bitcoin Price Recovery
According to the latest data, Bitcoin is undergoing mild recoveries, indicating that the worst of the selloffs might be over. However, data revealed a significant liquidation event. Leveraged futures positions worth more than $100 million were forced to close in the last 24 hours, with approximately $55 million coming from short bets on Bitcoin.
Author Robert Kiyosaki maintains a bullish outlook for Bitcoin’s future. He recently announced plans to purchase an additional 10 Bitcoin units before the upcoming halving event, anticipated to take place in April. His belief that this event could affect the asset’s scarcity and thus its value seems to be the driving force behind his decision to increase his Bitcoin holdings.
Kiyosaki suggested that those who can’t afford a whole Bitcoin should consider fractional ownership by buying Satoshis or investing in Bitcoin ETFs. His advice reflects his awareness of potential accessibility issues for some investors and his desire to give everyone the opportunity to invest in digital assets.
Currently, the price of Bitcoin is $67,565.00, up by 3.33% in 24 hours, showing steady recovery from the lows recorded over the weekend.
