Effects of a Lingering Bear Market
- Institutional crypto investors are rapidly pulling out of the market
- Bitcoin experienced the highest weekly outflow since March
- Weekly trading volumes in investment products are 36% below the year-to-date average
- On-exchange market volumes have fallen 62% relative to the year-to-date average
- Last week, 93% of outflows were from long Bitcoin investment products
Altcoins and Inflows
- Ethereum experienced outflows of $6 million
- Altcoins like Uniswap and Cardano saw outflows of $0.8 million and $0.3 million, respectively
- Solana recorded the largest inflows of $9.5 million
- XRP and Litecoin had inflows of $0.5 million and $0.46 million, respectively
- Outflows focused on ETP providers in Germany and Canada, with $71 million and $29 million, respectively
Comparative Outlook with Last Week’s Performance
- Outflows from Bitcoin shorts have stopped for the first time in 14 weeks
- Last week’s trading volumes for digital asset products were notably low at $915 million
- North America saw outflows of $11 billion from both Canada and the United States
- Germany recorded inflows of $5 million, while Switzerland and Sweden had outflows of $3.2 million and $2.6 million, respectively
Hot Take
Institutional investors pulling out of the crypto market, especially in Bitcoin, is a concerning trend. The lingering bear market and low trading volumes indicate a lack of confidence in the market. However, the inflows in altcoins like Solana, XRP, and Litecoin suggest that there is still potential for growth and diversification in the crypto space. It will be interesting to see if the market can regain momentum and attract more institutional investors in the coming weeks.
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