The post Bitcoin Leads Crypto Outflow With $400M Lost Amid Recession Fears appeared on BitcoinEthereumNews.com.

The cryptocurrency market experienced significant turbulence last week. Crypto investment products saw outflows for the first time in four weeks, amounting to a staggering $528 million. This sudden shift comes amid escalating fears of a looming recession in the United States and rising geopolitical tensions. Crypto Outflow Surges Beyond $500 Million Bitcoin (BTC), the flagship cryptocurrency, bore the brunt of this sell-off, witnessing outflows totaling $400 million. This marked a significant reversal following five consecutive weeks of inflows. Moreover, the surge in Bitcoin outflows highlights the heightened anxiety among investors amid crypto market crash. Ethereum (ETH) also faced substantial outflows, amounting to $146 million, according to a Source: CoinShares CoinShares report. Since the launch of Ethereum ETFs in the US, net outflows have reached $170 million. Although the newly launched US ETFs recorded positive inflows of $430 million last week, this was overshadowed by the $603 million outflows from the incumbent Grayscale trust. In addition, minor crypto outflow was witnessed from European Ether ETPs. Trading volumes in ETPs totaled $14.8 billion last week, representing a lower-than-average proportion of the total market at 25%. The price correction from Friday’s close resulted in a staggering $10 billion being wiped off the total ETP assets under management (AUM). Regionally, the majority of outflows were concentrated in the United States, which saw $531 million in crypto outflow. Germany and Hong Kong also experienced crypto outflow of US$12 million and $27 million, respectively. Conversely, Canada and Switzerland viewed the price weakness as an opportunity to add to their holdings, with inflows of $17 million and $28 million, respectively. Meanwhile, Short-bitcoin investment products, which profit from declining prices, saw their first measurable inflows since June, totaling $1.8 million. Hence, this indicates a growing bearish sentiment among investors regarding near-term prospects of Bitcoin price. Furthermore, blockchain equities…

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Filed under: News - @ August 6, 2024 1:24 am