Based on Bitcoin, cryptocurrency investments have experienced a week of outflows, which is unpleasant for Bitcoin and other cryptocurrencies. Bitcoin investors, in particular, are disappointed as they have seen the price of this global largest asset fall below $60,000 this week. According to recent inflow data from CoinShares, this adjustment has also flowed into cryptocurrency investment products. It is worth noting that cryptocurrency investment products saw a capital outflow of $584 million last week, expanding the outflow to $1.2 billion in two weeks.
Bitcoin is undergoing a real correction. According to CoinShares’ report, most of the outflows are concentrated in Bitcoin, with $630 million leaving the investment products of this cryptocurrency. As the report points out, this outflow sentiment is largely due to the increasing pessimism among cryptocurrency investors about the Fed’s interest rate cuts this year. Furthermore, the continued outflows indicate that Bitcoin may be undergoing a real adjustment.
However, although this adjustment may be underway, it does not necessarily translate into entirely negative sentiment towards Bitcoin. This inference is based on the corresponding $12 million outflow from short Bitcoin products, which indicates that most investors do not believe Bitcoin will continue to decline in the long term.
In terms of geographical location, the United States has the highest outflows, totaling $475 million. Interestingly, most of these recorded outflows came from spot Bitcoin ETFs traded in the United States. Data shows that there were daily outflows from spot Bitcoin exchanges last week, leading to the lowest trading volume for investment products since January 2024, at $6.9 billion. The outflows from Canada, Germany, and Hong Kong were $109.3 million, $23.8 million, and $19.3 million, respectively.
Ethereum also experienced an unpleasant week in terms of price movement, but it was not excluded from negative sentiment, recording a capital outflow of $58 million, the largest weekly outflow since 2024.
Unlike the outflow trend, many altcoin products saw surprising inflows despite the decline in spot market prices. Multi-asset products led the way with an inflow of $98 million. Solana, Litecoin, and Polygon also saw inflows of $2.7 million, $1.3 million, and $1 million, respectively.
Will there be more price adjustments in the future? This week will be crucial in determining whether Bitcoin and other cryptocurrencies will continue to experience price adjustments. Time will tell if the recent volatility is a further decline or a temporary one. However, the price movements observed in the past 24 hours suggest that the adjustment may be nearing its end.
Bitcoin, Ethereum, Solana, and many other cryptocurrencies have seen significant rebounds, with prices rising significantly in the past day. If this upward trend continues in the spot market, it may lead to an increase in inflows for cryptocurrency investment products this weekend.
BTC price remains at $61,000 | Source: BTCUSDT on Tradingview.com