The recent report from Cointelegraph highlighted an interesting and somewhat concerning trend in the digital asset market. Across the board, mainstream cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and even the newly appreciated asset Binance Coin (BNB) are suffering persistent outflows. This occurs as investors pull their funds out of the market, attributing to a fourth straight week of net capital flight amounting to $59.3 million.
This trend has been linked to regulatory uncertainties combined with strengthened dollar sentiments. Bitcoin experienced significant activity last week, with a colossal $68.9 million ejected from its coffers. The only solace was the modest offset in the form of short Bitcoin inflows amounting to $15.2 million. XRP, surprisingly, bucked the trend, registering a slight inflow worth $0.7 million.
Even Solana, revered as the “most loved altcoin amongst investors” by CoinShares after nine consecutive weeks of inflow, ultimately bowed down to the bearish trend, with an outflow of $1.1 million. This came to an abrupt end of a spectacular rally that accumulated $14.1 million inflows.
Interestingly, Ethereum did not fare much better either, trailing behind Bitcoin, with a distant second in outflows, draining it off $4.8 million. A notable observation by CoinShares indicates Ethereum to be the “least loved digital asset amongst ETP investors this year”, with year-to-date outflows amounting to $108 million.
Regionally, Brazil was a lone wolf recording inflows, although only a modest $0.1 million. Country activity leaders Germany, Canada, and the United States were primarily responsible for the outflow trend, reporting $20, $17.6, and $12.3 million in outflows respectively. Switzerland and Sweden chipped in significantly with the former draining $7.4 million and the latter further $2.3 million.
The market overview concludes with the prediction of Bitcoin’s slump possibly continuing even down to $20K. If this pessimistic sentiment pervades the rest of the market, altcoins will bear further outflows, maintaining the flow’s balance. With the market looking bearish, discerning market dynamics will be crucial in navigating these turbulent times. Prepare your portfolios, folks!
Source: Cointelegraph
