Crypto Products Saw $305M in Outflows Amid Widespread Negative Sentiment
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Digital asset investment products faced significant outflows last week, with a total of $305 million exiting the market.
The trend reflects a broader wave of negative sentiment that has gripped the cryptocurrency market across various regions and providers, CoinShares said in a recent report.
The primary catalyst behind this downturn appears to be stronger-than-expected economic data from the United States, which has reduced the likelihood of a 50-basis point interest rate cut by the Federal Reserve.
Bitcoin was at the center of this exodus, experiencing outflows totaling $319 million.
However, not all Bitcoin-related products suffered.
Short Bitcoin investment products, which profit from declines in Bitcoin’s price, saw their second consecutive week of inflows, amounting to $4.4 million.
This marks the largest inflow for these products since March, indicating that some investors are betting on further declines in Bitcoin’s value.
Ethereum, the second-largest cryptocurrency by market capitalization, also saw negative sentiment manifest in outflows, with $5.7 million leaving the market.
Trading volumes for Ethereum stagnated, reaching only 15% of the levels observed during the U.S. ETF launch week.
According to CoinShares, digital asset investment products saw a total net outflow of $305 million last week. Bitcoin saw outflows of $319 million. Ethereum saw outflows of $5.7 million, with trading volume stagnating. Solana saw inflows of $7.6 million. Blockchain stocks saw…
On the other hand, Solana, a blockchain platform known for its
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