Bitcoin’s Nightmare Continues: Investors Flock To Altcoins

Digital asset investment products have witnessed a net outflow of $32 million in the past week, marking the fifth week in a row of this downward trend, with the total over this period amounting to $232 million (0.7% of total assets under management), according to a report.

In its digital asset fund flows weekly report, Coinshares stated weekly transaction volumes dropped to $900 million, a significant 40% decrease from the average volumes for this year.

The wider market’s transaction volumes on trusted exchanges plummeted to the lowest level since late 2020, registering at $20 billion for the week.

On a regional basis, Germany led the exodus, accounting for $24 million, or 73%, of the total outflows.

The U.S. and Switzerland trailed behind, with outflows of $5 million and $3.3 million, respectively.

Meanwhile, minor inflows were observed in Brazil and Canada, at $1.3 million and $2.2 million, respectively.

Bitcoin BTC/USD accounted for the majority of the negative sentiment, with outflows amounting to $33 million. This trend aligns with the pattern observed over the past five weeks.

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Investment products that are short on Bitcoin also experienced minor outflows, with a weekly total of $1.3 million. Together, these outflows from Bitcoin-centric investment products have added up to $235 million over the last five weeks.

The reasons behind this coordinated negative sentiment toward both long and short-investment products remain unclear.

With the exception of Ethereum ETH/USD, which saw a minor outflow of  $1 million, alternative cryptocurrencies (altcoins) experienced inflows.

Notably, Avalanche AVAX/USD and Litecoin LTC/USD led the pack, with inflows of US$0.7m and US$0.3m, respectively.

Furthermore, blockchain equity ETFs also reported minor outflows for the second consecutive week, totaling $2 million last week.

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Photo: Shutterstock

Read More: Bitcoin’s Nightmare Continues: Investors Flock To Altcoins

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