Bitcoin Price Prepares for New Daily Low as Altcoins Approach Greater Losses
Last week, a total of $59 million was withdrawn from crypto investment products. This marks the fourth consecutive week of outflows, bringing the total outflows to $294 million. The share of this amount in total assets is around 1%. The entrance to short products did not come as a surprise, indicating that the institutional support for the market decline expectation continues.
The CoinShares report stated the following:
“We believe that the ongoing concerns about crypto regulation and the recent strength of the dollar are the most likely reasons for this. Trading volumes also decreased by 73% compared to the previous week, reaching $754 million weekly.”
Bitcoin and Altcoins
Bitcoin suffered the most losses last week with a $69 million outflow, while short-BTC funds saw their largest inflows since March 2023. This indicates that institutions are expecting a significant drop in the coming days. Indeed, last week’s prices were not much different from today’s levels. In March, the sentiment towards crypto turned significantly negative due to regulatory uncertainty and the banking crisis.
Ethereum saw a $4.8 million outflow. This brings the total outflows since the beginning of the year to $108 million. XRP continued to receive a total of $0.7 million in inflows last week. This puts XRP among the exceptions. However, despite the optimism about the outcome of the lawsuit, the overall market decline will also trigger sellers in XRP.
Last week, the stocks of blockchain companies also took their share from this selling wave. Outflows of $10.8 million marked the fifth week of sales.
At the time of writing, BTC had dropped to $25,130.
