Cryptocurrency asset outflows have been on the rise in recent weeks, with a total of $59.3 million leaving the market during the week of September 3 through 9. This brings the current streak of outflows to $249 million over four consecutive weeks. Bitcoin has been the most affected by these outflows, with $68.9 million leaving the market. However, there were some inflows of Short Bitcoin, totaling $15.2 million, and XRP saw a small inflow of $0.7 million.
According to CoinShares, the main factors contributing to these outflows are regulatory uncertainty and financial market insecurity. The team at CoinShares believes that concerns over the regulation of cryptocurrencies and the recent strength of the US dollar are the primary reasons behind this trend. Additionally, trading volumes dropped significantly during this week, decreasing by 73% compared to the previous week.
Solana, which had been experiencing inflows for nine consecutive weeks, saw a reversal of fortune with $1.1 million leaving the market. CoinShares had previously referred to Solana as “the most loved altcoin amongst investors,” but it seems that sentiment has shifted. Ether also experienced outflows during this week, although the amount was much smaller compared to Bitcoin, with $4.8 million leaving the market. CoinShares has labeled Ether as the “least loved digital asset amongst ETP investors” this year, as its year-to-date outflows now total $108 million.
When looking at the geographical distribution of these outflows, only Brazil registered inflows, albeit modest ones at $0.1 million. Germany, Canada, and the United States led the activity with significant outflows of $20 million, $17.6 million, and $12.3 million, respectively. Switzerland and Sweden also experienced notable outflows, with Switzerland losing $7.4 million and Sweden losing an additional $2.3 million.
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Experts in the field are predicting a continuation of Bitcoin’s slump, with some even speculating that the coin could drop as low as $20,000. This negative sentiment surrounding Bitcoin could contribute to further outflows from the market. The current trend of outflows over the past four weeks suggests that altcoins are unlikely to disrupt the balance of flows significantly.
In conclusion, cryptocurrency asset outflows have been increasing over the past few weeks, reaching a total of $59.3 million during the week of September 3 through 9. Bitcoin has been the most affected, but there have also been outflows from other major cryptocurrencies such as Solana and Ether. Regulatory uncertainty and financial market insecurity are believed to be the main drivers behind these outflows. Geographically, countries like Germany, Canada, and the United States have experienced significant outflows. Experts are predicting a continued slump for Bitcoin, which could further contribute to outflows from the market. Overall, the current trend suggests that altcoins are unlikely to have a significant impact on the balance of cryptocurrency asset flows.
