Cryptocurrency Outflows Extend for Six Weeks Straight: The Spotlight on Global Differences

Posted on by Artificial Intelligence
Depiction of a chilly crypto winter landscape, Ethereum and Bitcoin represented as icy giants slowly deflating, while 'altcoin' saplings Ripple and Solana growing beneath their shadows, catching rays of hope. Color palette in cool hues, subdued lighting sets a somber mood. Artistic style reminiscent of a dystopian graphic novel. Illustrate a distinct divide, connoting the divergence in investment behaviour, one side flourishing with European architecture, the other side showing U.S. in decline.

In a somewhat volatile week for digital asset investment products, a sixth unbroken week of outflows was experienced. Major players in the cryptocurrency space, Bitcoin (BTC) and Ethereum (ETH), contributed significantly to this trend. A recent CoinShares market report revealed $9 million outflows from these digital asset investments, with BTC responsible for $6 million of this sum, marking its third week of consistent outflows. ETH came up close behind with $2.2 million, suffering its sixth week of uninterrupted outflows.

The rapidly changing crypto landscape, dubbed the crypto winter, also saw markedly low volumes. A mere $820 million exchanges this past week is a notable dip from the annual mean volume, a hefty $1.3 billion. Elsewhere, the Short-bitcoin experienced a notable downfall in exits, falling from a monthly zenith of $15 million to only $2.8 million, as it saw 78% of its assets under management (AUM) withdrawn in the previous 22 weeks. Multi-asset products were not immune to the stumble, facing losses this week and a total of $32 million in outflows throughout this trading year.

Interestingly, amidst the downturn faced by BTC and ETH, some altcoins like Ripple(XRP) and Solana (SOL) recorded inflows. Investors showed confidence in these altcoins resulting in $0.66 million inflows in Ripple and $0.31 million in Solana.

Throughout the twists and turns, bulls continue to show determination. Although the price of Bitcoin currently fluctuates around significantly lower than the yearly high of $31,000, industry influencers remain committed to the potential upside of the crypto market.

In contrast to the United States, Europe seemed to respond positively to the crypto trends. This, in part, is due to clear regulations following the passing of the Market in Crypto Assets (MiCA) regulation in Europe. This has sparked a difference in recent investment narratives across different continents, attracting more investments in Europe as compared to the withdrawals in the United States.

This divergence in investment behaviour has led to a potential shift of the web3 talent away from the U.S. to regions with more lenient industry standards. Even platforms likeCoinbase have set their sights on regions such as the UK, Europe, Brazil, and Hong Kong as possible near-term priorities, whilst expressing criticism towards the regulatory standards in the United States.

Source: Cryptonews

Sponsored ad

More Articles

Bullish Bitcoin breakout, US debt ceiling standoff, global inflation fears, dim lighting, digital scarcity, gold's value drop, uncertainty & tension, U.S. Dollar Index surge, resilient markets, macroeconomic data contrast, cautious optimism, professional traders, hints of demand from short-sellers, looming financial pressures, cyberpunk-inspired artwork, somber mood.

Bitcoin’s Bullish Breakout Amid US Debt Ceiling Standoff and Inflation Fears

Despite ongoing market uncertainties, Bitcoin margin and futures markets indicate a potential bullish breakout, with its primary resistance level at $27,500. Global inflationary pressures and the U.S. debt ceiling standoff may contribute to Bitcoin’s digital scarcity as an attractive alternative investment. Traders maintain a cautiously bullish stance as Bitcoin’s market structure appears favorable.

A somber scene of a grand, abandoned ship, named 'IRI' (Industry Recovery Initiative) floating in rough cryptocurrency sea, under stormy skies representing the market downturns. The ship carries faded expectations, dwindling funds, and promises yet unfulfilled. The distance shows a small, comforting light source, symbolizing Binance, casting a minimal, cold light on the scene, depicting its passive role in this venture. Utilize a blend of surreal and realistic artistic styles to emanate uncertainty and critical retrospection.

Navigating the Cryptostorm: The Rise and Fall of Binance’s Billion-Dollar Recovery Initiative

“Binance’s ambitious Industry Recovery Initiative (IRI), a billion-dollar fund to rescue struggling cryptocurrency startups, has under-delivered. Only $15 million of the declared $1 billion has been deployed amidst regulatory pressures and lack of suitable investment opportunities. However, the initiative retains its significance in the volatile cryptocurrency ecosystem.”