Cryptocurrency investment products have recorded a third consecutive week as of last week. Bitcoin and Ethereum closed another week with loss of institutional funds.
Cryptocurrency investment products have left behind a bearish third week
As you follow on Kriptokoin.com, institutional indifference has been going on since late April. There had been some positive entries in the previous weeks.
Coinshares’ latest fund flow report for the week of May 1 shows that crypto investment products are experiencing a net outflow of $54 million. Bitcoin and Ethereum were among the main products that lost funds. Another of the biggest exits was Short-bitcoin with $23 million.
Bitcoin (BTC) records biggest fund outflow of the week
Bitcoin, in particular, has once again been the primary focus of investors, who saw $32 million in outflows last week. Sentiment in the US turned markedly positive, with $18 million in and the biggest weekly outflow from Short-Bitcoin at $23 million.
Investor activity in altcoins was unusually low
Ethereum investment products recorded minor outflows of $2.3 million. On the other hand, Solana maintains the positive sentiment with $3.4 million, the biggest entry in the last 12 months. Solana was one of the few investment products that received positive ratings last week. According to Coinshares’ report, altcoin investment products that have been raising funds while BTC and ETH have seen outflows in the past week:
- Solana (LEFT): +$3.4 million
- Tron (TRX) remained stable
- XRP (XRP) remains stable
- Cardano (ADA) remains stable
- Ethereum (ETH): -2.3 million dollars
- Bitcoin (BTC): -31.8 million dollars
Fund flow by region
Regionally, most of the exits were from Germany and Canada, with $27 million and $20 million respectively. The data show that Brazil and France in particular maintain the positive mood.
Blockchain stocks also held on to a weaker sentiment last week. It saw a net outflow of $7.3 million, the biggest weekly outflow since the start of 2023.
Fud news could be a major cause of corporate apathy
There has been an increase in fear and uncertainty surrounding Bitcoin lately. Initially, FUD started because of large BTC transactions by Binance. There was an exit of 117,359 BTC and an entry of 10,036 BTC. After these transactions, there was an additional outflow of 40,184 BTC.
These transactions lead many speculators to believe that Binance may be selling their BTC holdings. The transfers are attributable to internal adjustments in Binance’s cold wallet. Many members of the crypto community have voiced this rationale for internal adjustments.
According to CryptoQuant, there were three huge changes in Binance’s bitcoin balance today, namely the outflow of 117,359 BTC, the inflow of 10,036 BTC, and the outflow of 40,184 BTC. According to past practice, such a huge fluctuation should be an internal adjustment of the…
— Wu Blockchain (@WuBlockchain) May 7, 2023
According to CoinMarketCap, the price of Bitcoin fell 3.89% in a short time due to the high FUD caused by these events. But despite the drop in prices, its holders continued to support BTC and maintained their existence. The leading crypto is currently seeking new support levels in the $27,200 region.
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