In a significant market development, Bitcoin experienced outflows amounting to $33 million last week, marking a notable shift in investor sentiment toward profit-taking. Meanwhile, the latest report from CoinShares sheds light on this trend, emphasizing that the move appears to be more indicative of profit-taking rather than a broader change in sentiment towards the digital asset class.
Notably, this comes as digital asset investment products, after 11 consecutive weeks of inflows, saw a minor outflow of $16 million, signaling a dynamic market landscape.
Bitcoin Outflow Amid Crypto Market Selloff
CoinShares’ Digital Asset Fund Flows Weekly Report reveals that Bitcoin bore the brunt of the outflows, witnessing a notable $33 million exit last week. Meanwhile, the report suggests that this trend is part of profit-taking activities rather than a fundamental shift in sentiment towards digital assets.
However, despite the significant Bitcoin outflow, the overall trading activity remained robust, surpassing the year average at $3.6 billion for the week, compared to the year-to-date average of $1.6 billion.
In addition, while Bitcoin faced significant outflows, altcoins showcased resilience by attracting $21 million in inflows. Noteworthy beneficiaries include Solana, Cardano, XRP, and Chainlink, securing inflows of $10.6 million, $3 million, $2.7 million, and $2 million, respectively.
However, Ethereum and Avalanche experienced minor setbacks, with outflows of $4.4 million and $1 million, respectively.
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Blockchain Stocks Continue Record Inflows
Amidst the cryptocurrency market’s fluctuations, blockchain equities continue to enjoy positive sentiment. In the past week, these stocks witnessed substantial inflows of $122 million, contributing to a nine-week streak totaling a record-breaking $294 million.
This sustained interest in blockchain stocks underscores the ongoing investor confidence in the broader blockchain and digital asset ecosystem. As the market navigates profit-booking dynamics, the resilience of altcoins and the enduring appeal of blockchain stocks stand out in this ever-evolving landscape.
Meanwhile, the recent outflow in the digital asset space comes in line with the recent decline in the broader crypto space. As of writing, the global crypto market cap slipped over 2.85%, with Bitcoin price dropping 2.16% to $40,929.06 at the same time.
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