Investor Sentiment Remains Negative as Digital Asset Investment Products See Outflows
According to CoinShares’ latest report, investor sentiment in digital asset investment products remains sour as outflows continue for the fifth consecutive week. In the past week alone, there were outflows totaling $54 million, bringing the total outflows for the year to $455 million. However, despite the overall negativity, Bitcoin remains the most loved investment product.
Bitcoin Leads Outflows but Maintains Popularity
The report reveals that Bitcoin accounted for 85% of the outflows, with withdrawals totaling $45 million in the past week. This is a reversal from the previous week’s short-lived surge in short-Bitcoin inflows. Despite this, Bitcoin still boasts month-to-date inflows of $12 million, solidifying its position as the favored investment product.
Ethereum and Other Altcoins Experience Outflows
While Ethereum is perceived as having appealing investment fundamentals and strong demand for its staking yield, it experienced outflows totaling $4.8 million last week. Other altcoins like BNB and MATIC also saw modest outflows of $0.3 million each.
Some Altcoins Defy the Trend with Inflows
On the other hand, certain altcoins are defying the negative trend. Solana, Cardano, and XRP attracted inflows of $0.7 million, $0.43 million, and $0.13 million, respectively.
Negative Sentiment Concentrated in the United States
The primary source of negative sentiment from a regional perspective has been the United States, accounting for 77% of the outflows. Germany, Canada, and Sweden have also been affected by similar outflow trends.
Trading Volumes Increase Slightly
Despite the challenges, trading volumes showed a slight increase, reaching $1 billion for the week. This represents a 42% rise compared to the previous week.
Hot Take: Investor Sentiment Remains Negative with Bitcoin as the Preferred Investment Product
Despite ongoing outflows in digital asset investment products, Bitcoin continues to be the most loved investment product. With outflows totaling $45 million in the past week, Bitcoin remains popular among investors. However, Ethereum and other altcoins have experienced outflows, while some altcoins like Solana, Cardano, and XRP are defying the trend with inflows. The United States has been the primary source of negative sentiment, accounting for 77% of the outflows. Despite these challenges, trading volumes have shown a slight increase. Overall, investor sentiment remains cautious in the crypto market.
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