Cryptocurrency Investment Products Continue to Experience Outflows
According to data from CoinShares, cryptocurrency investment products have seen a decline for the sixth consecutive week. In the week ending September 24, the market experienced outflows of $9 million.
Bitcoin and Ether Witness Ongoing Outflows
Bitcoin, the leading cryptocurrency, suffered its third straight week of outflows, losing $6 million in funds. Short positions in Bitcoin alone saw an outflow of $2.8 million. Ether, the second-largest cryptocurrency, also faced a challenging situation with six consecutive weeks of outflows totaling $2.2 million.
Some Altcoins Show Positive Performance
Contrary to the overall trend, certain altcoins demonstrated inflows. XRP received $0.66 million in investments, while Solana attracted $0.31 million. This suggests growing interest in alternative cryptocurrencies among investors.
Diverging Sentiment Between European and U.S. Investors
The report highlighted a difference in sentiment between European and U.S. investors. European crypto investment products experienced an inflow of $16 million, while their U.S. counterparts faced an outflow of $14 million. This can be attributed to regulatory uncertainty and recent actions by the U.S. Securities and Exchange Commission against crypto companies.
Decline in Trading Volumes
The report also revealed a concerning trend of decreasing trading volumes, falling below $820 million. This is significantly lower than the 2023 average of $1.16 billion, indicating bearish pressure in the digital asset market.
Hot Take: Cryptocurrency Investment Products Continue to Face Outflows
Cryptocurrency investment products have witnessed another week of outflows, marking a recurring trend. Bitcoin and Ether experienced ongoing losses, while certain altcoins showed positive performance. The disparity in sentiment between European and U.S. investors reflects regulatory uncertainty. Additionally, trading volumes have declined, reflecting bearish pressure in the market.
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