Crypto Investment Products Experience Sixth Consecutive Week of Outflows
According to the latest data from CoinShares, crypto investment products witnessed outflows for the sixth consecutive week, reaching $9 million for the week ending September 24th. This trend indicates a downturn in investor sentiment towards digital assets.
Bitcoin (BTC), the most popular cryptocurrency, recorded its third consecutive week of outflows, with $6 million leaving the market. Additionally, short Bitcoin positions also experienced outflows, totaling $2.8 million. Ether (ETH), the second-largest cryptocurrency, saw its sixth consecutive week of outflows, with $2.2 million exiting the market.
Despite the overall negative sentiment, certain altcoins experienced inflows. XRP and Solana saw inflows of $0.66 million and $0.31 million, respectively. This indicates that some investors are still interested in exploring the altcoin space, with continued inflows into XRP and Solana.
The report highlighted a divergence in sentiment between European and U.S. traders based on regional activities. European crypto investment products saw $16 million in inflows, while U.S.-based products experienced $14 million in outflows. The uncertainty surrounding crypto regulations and recent actions by the U.S. Securities and Exchange Commission (SEC) against crypto companies likely contributed to this regional divergence.
The report also revealed a decline in weekly trading volumes, dropping below $820 million. This is significantly lower than the average of $1.16 billion reported in 2023. It suggests that traders are adopting a more cautious approach amid the current market conditions.
The recent market sentiment reflected in CoinShares’ report indicates bearish pressure in the crypto market. Bitcoin has struggled to break above the key resistance level of $27,000 and has remained relatively stable since the U.S. Federal Reserve’s decision not to raise interest rates for the quarter. The delayed payout to Mt. Gox creditors also impacted the market, although BTC remained largely unaffected by these events.
In conclusion, the consecutive outflows from crypto investment products indicate a decline in investor confidence in digital assets. However, certain altcoins like XRP and Solana continue to attract interest. The regional divergence in sentiment suggests that regulatory uncertainty plays a role in investor decisions. As trading volumes decrease, it remains to be seen how the market will react in the coming weeks.