Heightened geopolitical tensions coupled with a subdued crypto market ambience have prompted investors to exercise caution, resulting in substantial outflows from digital asset investment vehicles.
According to CoinShares, a staggering $126 million exited digital asset investment products.
Bitcoin (BTC) faced an 8% decline over the past seven days, plummeting to as low as $61,000 on various cryptocurrency exchanges, as reported by CoinMarketCap.
In response to the market downturn, short BTC investors, anticipating further price drops, injected $1.7 million into products and positions, capitalizing on the bearish sentiment.
Despite the outflows, Bitcoin products such as spot ETFs continued to witness inflows surpassing $555 million month-to-date.
The overall trading volume for digital asset investments saw an uptick, reaching $21 billion week-on-week, up from $17 billion the previous week.
However, ETF volumes retreated to 31% of the total volume across approved exchanges due to dwindling investor confidence, notably in the U.S., which saw the largest outflows totalling $145 million.
While certain altcoin products garnered investor interest, Ethereum (ETH) faced its fifth consecutive week of outflows, amounting to $29 million. The token experienced an 11% downturn amidst a broader market correction.
Solana (SOL), previously hailed as an ‘Ethereum-killer,’ witnessed outflows totalling $3.6 million.
Conversely, investment products tied to seasoned virtual assets like Decentraland (MANA), Basic Attention Token, and Lido attracted inflows of $4.9 million, $2.9 million, and $1.8 million, respectively.
Despite the prevailing market stagnation and retracements across various assets, there has been a recent surge in positive market activity.
CoinGecko reported a 3.6% increase in the total crypto market cap over the last 24 hours, signalling a potential turnaround amidst ongoing volatility.
