According to the latest data from CoinShares, crypto investment products recorded their sixth consecutive week of outflows, with $9 million exiting the digital asset space in the week ending September 24. This trend is indicative of a bearish sentiment among investors.
Bitcoin witnessed its third consecutive week of outflows, with $6 million leaving the market. Additionally, short Bitcoin positions saw outflows of $2.8 million. Ether also experienced its sixth consecutive week of outflows, with $2.2 million exiting over the past week.
However, some altcoins, such as XRP and Solana, saw inflows of $0.66 million and $0.31 million, respectively. The report suggests that investors are showing increasing interest in the altcoin space, as evidenced by continued inflows into XRP and SOL.
The data also highlights a divergence in sentiment between European and U.S.-based traders. While European crypto investment products had $16 million in inflows, U.S.-based products saw $14 million in outflows. This discrepancy is attributed to the uncertainty surrounding crypto regulations and recent actions taken by the U.S. Securities and Exchange Commission (SEC) against crypto companies.
The report further reveals that weekly trading volumes dipped below $820 million, significantly lower than the average volume of $1.16 billion seen in 2023. This decline in trading activity signifies a decrease in market participation and indicates a lack of confidence among investors.
The recent market sentiment, as reflected in CoinShares’ flow market report, appears to exert bearish pressure on the market. Bitcoin’s price has been unable to surpass the key resistance level of $27,000, remaining relatively stagnant since the U.S. Federal Reserve’s decision not to raise interest rates for the quarter. Additionally, the delay in the Mt. Gox creditor’s payout also played a significant role in price action last week, yet BTC remained mostly unaffected by both major market events.
In related news, European digital asset manager CoinShares reported a 33% increase in revenue during Q2, indicating a positive growth trajectory in the industry.
Overall, the CoinShares data suggests that the crypto market is currently experiencing a period of uncertainty and cautiousness among investors, with outflows dominating the scene. The regulatory landscape and recent actions by regulatory bodies like the SEC continue to impact market sentiment and investment decisions.
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