With record capital outflows in the market, Bitcoin leads the way. Is the bear market coming?


According to reports from the market, Bitcoin and altcoins did not have their best week. After the recent market rebound, the entire cryptocurrency market has been enjoying continuous inflows for several months. As inflows and assets under management set a new record, it has pushed crypto assets such as Bitcoin to new highs. But this seems to be changing.

After 17 consecutive weeks of inflows, the market is now seeing trends in the opposite direction. Although assets such as Ethereum have recorded outflows at different times before, they have been isolated from a few. Now the entire market has experienced outflows in the first week after four consecutive months of inflows, and at the same time hit a record high.

Related Reading | Survey found that millennial millionaires are most optimistic about cryptocurrencies

Maximum record outflow

The total outflow last week was US$142 million. This marked the first week of outflows after 17 consecutive weeks of inflows leading to record highs of assets under management. This is not only the first week of capital outflow after more than four months of capital inflows, but also the largest weekly capital outflow in the cryptocurrency market on record.

This is after an impressive rebound in the cryptocurrency market, when major cryptocurrencies hit new highs. As investors took profits and institutional investors were not excluded, there was a sell-off in the entire market. However, despite the record high outflow, it only accounts for a small portion (0.23%) of the assets under management, which is insignificant compared to the outflow of 1.6% of the total asset under management in 2018.

This year’s total inflows reached a record 9.5 billion U.S. dollars, nearly 50% higher than the 6.7 billion U.S. dollars set in 2020. Therefore, despite the outflow, the inflow this year has remained at a historical high.

CoinShares also notes The crypto market is not the only market that records outflows. After the Fed issued its exit statement, risk assets have flowed out across the board.

Bitcoin causes an outflow

Bitcoin leads the list of assets with the most outflows this week. Since the creation of a record high of US$69,000, the price of the digital asset has plummeted below US$50,000, but continued inflows in the following weeks. This marked the first capital outflow in more than 17 weeks, but it was still far below the $150 million capital outflow recorded in June.

Related Reading | The struggling price exceeded Bitcoin’s expectations, falling from $100,000 to $50,000

In the past 17 weeks, Ethereum has alternated between inflow and outflow. The second largest cryptocurrency also experienced a record outflow this week, with a total outflow of $64 million, as it continues to fight the outflow of Bitcoin.

Solana, Polkadot, and multi-asset investment products survived because they received inflows of US$6.7 million, US$2.5 million, and US$1.5 million, respectively.

BTC recovers above $48K | Source: BTCUSD on TradingView.com
Featured image from Wikipedia, chart from TradingView.com



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