Bitcoin Sees Third Week of Outflows, Signaling Bearish Sentiment
- Digital asset investment products saw outflows of $54M, marking three consecutive weeks of negative sentiment.
- Bitcoin leads the outflows with $32M, and short-Bitcoin investment products experience record outflows of $23M.
- Despite the negative sentiment, investment products still see significant interest, with Solana experiencing significant inflows.
Investors in digital assets are experiencing a shift in sentiment as fund outflows increased in the week ending May 7, 2023. According to CoinShares’ latest digital asset fund flows weekly report, investment products saw outflows of $54 million, marking the third consecutive week of negative sentiment.
Bitcoin was the primary focus of investors, with outflows of $32 million. Germany and Canada saw the largest outflows at $27 million and $20 million, respectively. Short-bitcoin saw the largest weekly outflows on record, amounting to $23 million, indicating a potential bearish outlook for the cryptocurrency.
Altcoins and Blockchain Equities See Minimal Activity
On the other hand, altcoins saw minimal activity, with Ethereum investment products experiencing minor outflows of $2.3 million and Solana experiencing the only significant inflows at $3.4 million, the second-largest in the last 12 months. Blockchain equities also saw significant outflows of $7.3 million, reflecting a profit-taking sentiment despite recent positive price performance in the sector.
Despite the negative sentiment towards digital assets, investment products still see significant interest, suggesting digital assets remain a viable investment opportunity. The report highlighted that volumes for the broader digital asset industry remain at half their year-to-date levels, while volumes in investment products are 16% above average. This suggests that while investor sentiment remains negative, there is still significant interest in digital assets as an investment opportunity.
The report also noted that Bitcoin influences investor sentiment in digital asset markets. The cryptocurrency’s recent outflows, including record outflows from short-Bitcoin investment products, indicate a bearish outlook for the cryptocurrency. However, despite the negative sentiment, investment products still see significant interest, suggesting that digital assets remain a viable investment opportunity.
Investors looking to invest in digital assets must exercise caution and seek expert advice. The volatility of the digital asset market can lead to significant gains or losses, making it crucial to have a solid understanding of the market and the risks involved.
The recent outflows in digital asset investment products, particularly in Bitcoin and blockchain equities, indicate bearish sentiment. However, the interest in investment products suggests that digital assets remain a viable investment opportunity, albeit with caution. Investors may need to exercise patience and seek expert advice to navigate the volatility of the digital asset market.
Recommended For You
Bitcoin Transaction Fees Shoot Up Above $30; Lighting Network to Rescue?
Read more: https://thenewscrypto.com/bitcoin-sees-third-week-of-outflows-signaling-bearish-sentiment/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
