• Last week saw a 223% increase in outflows from digital asset products, with both BTC and ETH logging outflows.
• Trading volumes for digital asset investment products were also low for the week, compared to the US$1.5bn weekly average this year so far.
• Bitcoin experienced significant outflows, as its price lingered within the $29,000 and $32,000 range with resistance at $30,000.
Outflows Surge as Traders Look For Profits
Waning positive sentiments amid the sideways trading of many crypto assets have led a number of investors to look toward profit-taking. This cascaded into a surge in outflows from crypto funds last week. According to its new report , digital assets investment firm CoinShares found that last week’s outflows totaled $21 million – representing a concerning 223% increase from the $6.5 million registered in outflows the previous week.
Trading Volume Low Despite Profit Taking
During that period, “trading volumes for digital asset investment products were low at US$915m for the week, compared to the US$1.5bn weekly average this year so far,“ the report noted. Typically, a decline in general market trading volume accompanied by increased outflows often signals a temporary slowdown in market activity; As some traders scamper to book profits while others are cautious as they refuse to open new trading positions.
Bitcoin Outflow Signals Shift From Positive Sentiment
Since April, Bitcoin’s [BTC] price has lingered within the $29,000 and $32,000 price ranges, facing significant resistance at $30,000; Despite this BTC products recorded significant outflows as positive sentiment remained in the market However as positive sentiments dwindled it logged outflows of $13 million in the previous week – with 93% of these being from long-Bitcoin investment products according to CoinShares‘ report – reflecting on an overall decrease of trading volume across exchanges which dropped on average from US$52bn per week down to only US$16bn during last weeks period alone.
Short Bitcoin Products Also Logging Outflow
Not performing any better Short-Bitcoin investment products recorded their 14th week of consecutive outflow according to CoinShares report indicating that overall investor sentiment was shifting away from both long and short positions during this time frame..
Overall Market Activity Slows Down
The waning sentiment among traders has caused an overall slowdown in activity resulting in decreased trading volumes and increased outflowing activity evidenced by both Bitcoin’s long and short product performance over recent weeks . Looking ahead it remains unclear how much longer investors will continue taking profits before returning back into markets or whether overall market conditions could cause further declines over coming days/weeks