The cryptocurrency market has been in the red over the past week, with Bitcoin seemingly determined to settle below the symbolic $100,000 level. This period has just seen record outflows from its ETPs, estimated at over $2 billion.
Crypto market: $2 billion in weekly outflows
The cryptocurrency market is currently experiencing a significant decline, clearly confirmed by Bitcoin’s recent fall below the symbolic threshold of $100,000 at the end of last week, with the BTC price currently positioned at around $96,000.
This situation has also led to significant declines in altcoins, with the current top 10 showing negative performances ranging from -6.5% for BNB to -15% for Solana’s SOL at the time of writing.
This provided an opportunity for the analysis firm Coinshares to take stock of the situation in its latest weekly publication on flows recorded by Exchange-Traded Products (ETPs) linked to the cryptocurrency market, i.e., all financial products traded on the stock exchange, including ETFs.
And it’s fair to say that the results for last week are not good, with outflows exceeding $2 billion, making them the largest outflows since last February.
Crypto-asset investment products recorded outflows totaling $2 billion last week, the largest since February this year. This is the third consecutive week of outflows, bringing the total to $3.2 billion.
Coinshares
The US accounts for 97% of these outflows
According to Coinshares analysts, the historically high amount of these outflows is directly attributable to “uncertainty surrounding monetary policy” in the US, but also to what it identifies as “sales by crypto-native whales.”
As a result, the US market alone accounts for 97% of these weekly outflows ($1.97 billion), while “Germany is an exception with $13.2 million in inflows despite a negative global environment.”
In detail, it is unsurprisingly Bitcoin and Ethereum that dominate with estimated global outflows of $1.38 billion and $689 million, respectively, while multi-asset funds are recording positive inflows at the same time.
The current downturn in the cryptocurrency market has also “led to a decrease in the amount of assets under management (AuM) held by crypto ETPs, from a peak of $264 billion in early October to $191 billion, a decline of 27%.”
As far as traders are concerned, short positions on Bitcoin now dominate the trend, with a total of $18.1 million in inflows over the last week.
