Crypto Market Sees $1 Billion Outflows—Bitcoin and Select Altcoins Show Resilience
The post Crypto Market Sees $1 Billion Outflows—Bitcoin and Select Altcoins Show Resilience appeared on BitcoinEthereumNews.com.
The latest report from CoinShares, a leading digital asset investment firm, reveals that last week’s performance for crypto asset investment products was mixed. According to the report, the market experienced inflows totaling $308 million, marking a continuation of positive trends. However, there was also a series of outflows that amounted to roughly $1 billion. Deciphering The Fund Flows The data shared by CoinShares highlighted substantial outflows, with December 19 witnessing a single-day outflow of $576 million. The final two days of the week contributed an additional $1 billion in total outflows, raising concerns among market participants about sustained investor sentiment. Weekly crypto asset flows. | Source: CoinShares James Butterfill, Head of Research at CoinShares, explained that these outflows “coincided with a price correction” and “followed the hawkish outlook” presented by the Federal Reserve during its Federal Open Market Committee (FOMC) meeting. According to Butterfill, the market reacted to the revised “dot plot,” which suggested potential future interest rate hikes. Despite these notable outflows, the cumulative impact on total assets under management (AuM) was relatively minor, equating to just 0.37% of total AuM. Butterfill further noted that this event ranks as the 13th largest single-day outflow recorded, with the most significant outflow occurring in mid-2022 after a similar FOMC announcement. While the headline numbers suggest market caution, Bitcoin (BTC) showed resilience, managing net inflows of $375 million despite intra-week volatility. Notably, short Bitcoin products saw minimal activity, indicating continued investor confidence in Bitcoin’s long-term potential. BTC price is moving upwards on the 1-hour chart. Source: BTC/USDT on TradingView.com Altcoins and Multi-Asset Investment Trends The report further revealed the contrasting performances between various altcoins and multi-asset investment products. Particularly, outflows from multi-asset funds were quite significant hitting $121 million, as investors took a more selective, asset-specific approach. Such behavior indicates investors are…
Filed under: News - @ December 23, 2024 8:27 pm