Crypto Exodus: 6 Weeks Of Consecutive Outflows Raise Alarms Amid Shifting Sentiment

You are here: Home / News / Altcoin News / Crypto Exodus: 6 Weeks Of Consecutive Outflows Raise Alarms Amid Shifting Sentiment


Crypto investment products have reported their sixth consecutive week of outflows, according to data from CoinShares, raising concerns among investors as the digital asset market faces challenges and shifting sentiment between regions.

For the week ending September 24th, the total outflows from digital asset investment products amounted to $9 million. This prolonged streak of outflows reflects a cautious approach among investors in the cryptocurrency space as the market grapples with regulatory uncertainty and other factors.

This week’s notable development was the significant sentiment divergence between European and US investors. While European investors seized the opportunity presented by recent regulatory disappointments, pouring in a total of $16 million, their counterparts in the United States withdrew $14 million.

This contrasting sentiment highlights the varying attitudes towards cryptocurrency investments in different parts of the world.

Altcoin Space Attracts Discerning Crypto Investors

Amidst the outflow trend, the altcoin space has a silver lining. Investors are displaying discernment by directing their funds towards specific cryptocurrencies. Notably, XRP and Solana have continued to garner investor interest, with inflows totaling $0.66 million and $0.31 million, respectively.

Bitcoin saw minor outflows for the third consecutive week, totaling $6 million. Additionally, short-Bitcoin investment products experienced outflows of $2.8 million. While there was a brief influx of $15 million into short-Bitcoin products earlier in the month, this appears to have been an isolated event.

Over the past 22 weeks, outflows have dominated, amounting to a substantial 78% of assets under management (AuM), indicating that investors may be relinquishing their short positions.

Ethereum has faced a similar fate to Bitcoin, with outflows for the sixth consecutive week totaling $2.2 million. The challenges faced by Ethereum and the broader altcoin market have also affected multi-asset investment products, which have witnessed a consistent trickle of outflows throughout the year. The total outflows for these products have now reached $32 million for the year to date.

In all, the cryptocurrency market continues to experience turbulence, with investors carefully assessing their options and making selective investments. However, the enduring appeal of specific altcoins like XRP and Solana demonstrates that investors are still finding opportunities amidst the challenges.

Related Reading | Crypto Cold Storage Surge: Bitcoin Investors Go Offline Amid Market Turbulence

Read More


Leave a Reply

Your email address will not be published. Required fields are marked *

Search this website