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Research performed by CoinShares indicated that cryptocurrency markets experienced a fifth straight week of outflows, with the current week’s total reaching a loss of $32.1 million.
CoinShares obtained data from digital asset investment firms, including Grayscale and ProShares, which serve institutional and accredited investors.
James Butterfill, the Head of Research at CoinShares, noted that this trend was attributed to “negative sentiment centered on BTC.”
Crypto markets endure fifth consecutive weekly outflow
The chart below illustrates the ongoing outflows from crypto assets starting from week 16. The cumulative outflows during this timeframe totaled $232 million.
Since the beginning of 2023, there have been more weeks of outflows than inflows, with week 10 (starting Monday, March 6) marking the highest weekly outflows this year, exceeding approximately $270 million during that time.
The early part of March was marked by bank collapses, which included the failures of Silvergate, Signature Bank, and Silicon Valley Bank amid the current high-interest rate climate.
Source: CoinShares.com
Following that period, Bitcoin’s price rebounded, rising from a low of $22,390 to close the week beginning March 13 at $28,140, eventually surpassing $31,000 a month later. Analysts linked this recovery to a change in market sentiment towards tangible assets.
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More recently, the themes of U.S. regulatory challenges and uncertainty regarding discussions on the U.S. debt ceiling have negatively impacted crypto assets overall.
Germany recorded the largest outflows
Asset flow analysis revealed that Bitcoin accounted for the largest losses, totaling $32.7 million during week 20. Ethereum and Short Bitcoin also faced losses, though at much lower amounts of $1 million and $1.3 million, respectively.
Source: CoinShares.com
Further examination by country indicated that Germany was responsible for the majority of outflows, making up 75% of the weekly decline. The U.S. followed with $5 million, and Switzerland accounted for $3.3 million.
Source: CoinShares.com
CoinShares noted that the trend of outflows was associated with significantly reduced volumes for both institutional investors and spot markets.
“Volumes totaled US$900m for the week, 40% below this year’s average. Volumes for the broader market on trusted exchanges reached their lowest level since late-2020 at US$20bn for the week.”
The post Fifth consecutive weekly outflows point to crypto market fragility appeared first on CryptoSlate.
