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During the week of September 3 to 9, cryptocurrency asset outflows amounted to $59.3 million, resulting in a total of $249 million over a span of four consecutive weeks.
Bitcoin (BTC) accounted for the majority of the activity last week, with outflows of $68.9 million, which were partially countered by inflows into Short Bitcoin totaling $15.2 million and $0.7 million from XRP (XRP).
As reported by CoinShares, the ongoing concerns regarding regulation and instability in financial markets are contributing factors to this trend:
“We believe that persistent anxieties over the regulation of the asset class and the recent strength of the dollar are the most probable causes for this. Trading volumes also saw a significant decline, dropping by 73% compared to the previous week, totaling just US$754 million for the week.”
Additionally, last week marked the end of Solana’s (SOL) recent inflow streak. Following nine weeks of inflows totaling $14.1 million, which led CoinShares to describe it as “the most loved altcoin amongst investors,” Solana experienced outflows of $1.1 million.
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Ether (ETH) also faced outflows during the week, with $4.8 million, significantly trailing behind Bitcoin. With year-to-date outflows now reaching $108 million, CoinShares has categorized it as the “least loved digital asset amongst ETP [exchange-traded product] investors this year.”
Crypto flows. Source: CoinShares
In terms of geography, only Brazil recorded inflows, albeit modest at $0.1 million. Germany, Canada, and the United States were the most active, with outflows of $20 million, $17.6 million, and $12.3 million, respectively.
Switzerland and Sweden also saw notable outflows, with Switzerland losing $7.4 million and Sweden experiencing an additional $2.3 million in outflows.
Analysts are forecasting a continuation of Bitcoin’s downturn, with some anticipating that the coin could drop as low as $20,000. This prevailing negative sentiment may lead to further outflows, as the current four-week trend suggests that altcoins are unlikely to significantly alter the flow dynamics.
Related: Double top ‘likely’ confirmed — 5 things to know in Bitcoin this week
