- Last week saw a 223% increase in digital asset product outflows.
- Leading coins BTC and ETH both recorded outflows, while other alts saw inflows.
While leading crypto assets continued to trade within narrow price ranges, profit-taking activity increased last week. This resulted in a second consecutive week of outflows from digital asset products.
According to his new report, investment firm CoinShares found last week’s outflows totaled $21 million. This represented an increase of approximately 223% from the previous week’s $6.5 million recorded outflow.
CoinShares further found that the week in question was marked by a shortfall in trading volume. During that period, “trading volumes for digital asset investment products were low at US$915 million for the week, compared to the weekly average of US$1.5 billion this year so far,” the report said.
Typically, a decline in overall trading volume in the market, along with greater outflows, often indicates a temporary slowdown in market activity. While some traders run to make profits, others are cautious as they refuse to open new trading positions.
Bitcoin is king, but at what price?
Since April Bitcoins [BTC] price has stalled within the $29,000 and $32,000 price ranges, with significant resistance at $30,000. Despite this, BTC products posted significant outflows as positive sentiment in the market continued.
However, as positive sentiment waned, the coin posted $13 million outflows over the past week. As many continued to exit their trading positions, CoinShares saw a 46% increase in outflows last week. According to the report, “93% of outflows came from long Bitcoin investment products.”
The drop in trading volume in the market also had an impact on BTC. CoinShares stated:
“This was reflected in the wider Bitcoin market, where a total of US$16 billion was traded on trusted exchanges last week, compared to this year’s weekly average of US$52 billion”
Short Bitcoin investment products did not outperform, recording their 14th week of consecutive outflows, which totaled $3.1 million.
Investors rallied towards other alts and ignored Ethereum
During last week’s trading session, ETH-based assets recorded a “small outflow” of $1.9 million.
This was a rapid turnaround in investor attitudes towards the leading altcoin in the previous week as ETH “topped the leaderboard”, with weekly inflows of $6.6 million. In fact, CoinShares noted that “sentiment, which has been bad this year, is slowly starting to turn.”
As for other altcoins:
“Cardano, Solana and XRP saw the largest inflows at US$0.64 million, US$0.6 million and US$0.5 million respectively.”