Bitcoin Outflows Continue as Stronger Macro Data Weighs on Crypto Sentiment: CoinShares

In its latest report on crypto fund flows, CoinShares, a crypto research and investment firm, noted that digital asset investment products experienced minor outflows amounting to US$2m. However, this doesn’t paint the whole picture as the largest inflows were into short investment products, indicating broader negative sentiment.

Bitcoin saw outflows for the third consecutive week, totaling US$12m, while short-bitcoin saw inflows amounting to US$10m. The report suggests that this reflects nervousness among US investors prompted by recent stronger than expected macro data releases. The Federal Reserve’s hawkish stance is also contributing to investors’ fears, leading to outflows totaling US$14m.

Interestingly, Ethereum remains relatively insulated from the recent negative sentiment, seeing only US$0.2m of outflows last week. Minor inflows were noted in Polygon, Solana, and Cardano, totalling US$0.6m, US$0.5m, and US$0.4m, respectively.

Source: CoinShares

The report also highlights the vulnerability of growth-focused blockchain equities to interest rate expectations, as they saw outflows totalling US$7.2m.

The crypto market is known for its volatility, and the recent negative sentiment underscores the need for investors to stay informed and remain cautious when investing in digital assets. As the regulatory crackdown in the US continues, investors will be closely watching how governments around the world respond to cryptocurrencies.

Despite the recent negative sentiment, the long-term outlook for cryptocurrencies remains positive, with more institutions and corporations embracing them as a legitimate asset class. However, the market’s unpredictability means that investors must remain vigilant and adapt to the changing landscape.

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