Altcoins
Altcoins Defy Trends as Bitcoin Faces $600 Million Outflow – What’s Next? — TradingView News
The Bitcoin market has seen significant changes recently, influenced by macroeconomic factors and changing investor sentiments. Last week, digital asset investment products saw significant outflows, which CoinShares attributed to several key economic updates.
These include the release of US CPI data, the Federal Open Market Committee (FOMC) meeting and the Producer Price Index (PPI) figures. These events appeared to trigger a rapid rise in the price of Bitcoin, briefly pushing it towards the $70,000 mark before a rapid downturn brought the valuation back to around $65,000.
Market Changes: BTC Faces Significant Capital Outflows While Some Altcoins Attract Investment
So far, this Bitcoin price fluctuation is part of a broader pattern of volatility that has characterized the digital currency market. Last week alone, institutional and retail investors withdrew around $600 million from crypto funds, marking a significant pullback.
CoinShares suggests this could signal a growing trend of caution, amplified by a “hawkish stance” at the recent FOMC meeting, which could have encouraged investors to reduce their exposure to volatile assets like cryptocurrencies.
Bitcoin, notably the most affected, faced capital outflows totaling $621 million. Despite this, there was a glimmer of hope as altcoins like Ethereum, Litecoin and others saw minor inflows. Ethereum leads with a $13 million increase, suggesting divergent investor confidence in altcoins versus Bitcoin.
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This scenario presents a mixed picture in which Bitcoin struggles under selling pressure while some altcoins gain marginal traction. At the same time, the overall impact on the market has been palpable, with total assets under management falling from over $100 billion to $94 billion in one week.
Trading volumes also fell significantly from their annual average, indicating a cautious approach from traders across the board. Regionally, while the United States was most affected by outflows, countries like Germany saw inflows, suggesting a varied global response to the current economic climate.
Bitcoin ETFs See Mixed Fortunes
Despite a steady increase in overall net inflows into U.S. spot Bitcoin exchange-traded funds (ETFs), which reached $15.11 billion in recent weeks, the sector saw a slowdown last week with an outflow net of $190 million per day, according to SoSoValue data.
In terms of market performance, the value of Bitcoin declined sharply, reaching a low of $65,398 last Friday. However, as of today, Bitcoin price has recovered slightly to $65,552, although it is still down 1.1% over the past day and 5.5% over the week .
Speaking on Bitcoin spot ETFs, Samara Cohen, BlackRock’s chief investment officer, observed gradual but steady interest in them despite their slower-than-expected adoption.
According to Cohen, currently the majority of Bitcoin ETF trades, around 80%, are made by “self-directed investors” using online brokerage platforms.
Cohen added that the iShares Bitcoin Trust (IBIT) is one of the ETFs launched this year, attracting attention from individual investors, hedge funds and brokerages, as noted in recent 13-F filings.
However, participation by registered investment advisors remains relatively low, Cohen explained at the recent Crypto Summit.
Featured image created with DALL-E, chart from TradingView