Bitcoin and Etherum See Heavy Outflows Worth $110 Million For The First Time In 7 Weeks

Regulatory hurdles and geopolitics remain key investors’ concerns about digital assets. Remarkably, Bitcoin has been trading roughly flat over the past 24 hours. Trading volume on the major exchanges even fell to its lowest level since February 19. Well, this signals some caution for traders ahead of this week’s Fed meeting. Strangely enough, altcoin suffered the same fate.

Free fall’

Bitcoin and Major Altcoins Witnessed Significant Money Outflows According to Latest weekly CoinShares report. Unfortunately, digital asset investment products suffered a $110 million outflow last week. Here, crypto investment products experienced an outflow for the first time in seven weeks last week.

Source: CoinShares

Geographically, North America and Europe saw an outflow of $80 million and $30 million mainly caused by the response of US President Joe Biden’s executive order to crypto. Although the exact reasons were unclear. However, the report stated,

“Regulatory and geopolitical concerns remain at the forefront of investor concerns about digital assets.”

BTC experienced the heaviest outflow, with $70 million exiting BTC investment products. Investment products traded $1 billion last week, compared to the average $1.24 billion. So this represents only 5% of the total Bitcoin trading volumes. This scenario was shown in the graph below.

Source: CoinShares

Indeed, a drastic change from the previous report, dated March 9, when Bitcoin was the most popular asset among institutional investors, as nearly $100 million in funds was invested in it.

Unfortunately, that was not the case here. Ethereum saw its second-largest outflow on a relative basis last week. It totaled $51 million year-to-date outflows and represented 1.2% of assets under management. Other than this, major altcoins saw a mixed reaction.

Digital assets Solana, XRP and Polkadot saw outflows of $0.3 million, $0.7 million and $0.9 million, respectively. However, Cardano and Litecoin each had inflows of $0.2 million.

Despite the bloodshed, outflow in digital asset funds investing directly in cryptocurrencies, blockchain-related stocks remained popular. the blog claimed,

“Multi-asset (multi-coin) and blockchain equity investment products saw inflows totaling US$12 million and US$4.1 million last week and remain the most popular among investors…”

Try harder?

Well, according to Santiment, the crypto market has been trying to recover the losses as mentioned in the tweet below. But was this enough?

Apparently not, Bitcoin along with major altcoin continued to bleed more as the losses got worse. In general, the crypto market past a 1% setback according to CoinMarketCap.

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