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Crypto Market Sheds $134 Million in Bearish Week

This is the second bloodiest week of outflows this year after the $269 million outflows in the week ending January 10.
| CryptoPress
 | Last updated: June 10, 2023
| CryptoPress
Last updated: June 10, 2023

CryptoPress

This is the second bloodiest week of outflows this year after the $269 million outflows in the week ending January 10. The latest weekly outflow is almost 1.5 times higher than the weekly average of $94 million so far this year.

CoinShares, a cryptocurrency asset manager found that the digital asset market lost $134 million in profit-taking in the week ending April 8. Bitcoin contributed a major $132 million out of the total investment outflow, while altcoins remained positive amid the larger profit-taking.

“According to our estimates, market participants took around 134m in profit-taking last week,”

Christopher Bendiksen

Research revealed that Bitcoin’s domination over the crypto market fell below 60% last week while Ethereum saw a positive inflow of $7 million. The Ethereum inflows were recorded as its biggest since October 2020.

Most of the investments left Bitcoin and went into Ethereum-based exchange-traded products (ETPs) with a total of $73 million in inflows. This was followed by an inflow of $26 million into Grayscale‘s Ethereum Trust and $7 million into its Bitcoin Trust.

“According to our estimates, market participants took around 134m in profit-taking last week,” said CoinShares’ head of research Christopher Bendiksen.

Per CoinShares’ research analyst James Butterfill, altcoins like Solana, Cardano, Litecoin, and Polkadot remained positive amid the larger profit-taking, indicating that investors are actively rotating into these projects from Bitcoin.

Solana’s $SOL token remained the best performing asset class for the second straight week, gaining more than 24% in value. The altcoin was followed by Cardano which added 14%, while Litecoin increased 12%. Polkadot recorded an 11% gain during the same period.

Forecast: Cloudy

Bitcoin is on track to see more losses in the coming weeks. Analysts found that negative signals are becoming more prominent in the market, which could result in more losses for Bitcoin (and other cryptocurrencies) ahead. Ahead of the release of the official CPI numbers, the 10-year Treasury yield also surpassed 2.75% for the first time after 2019. And, a rise in bond yield tends to negatively affect risk assets like Bitcoin and tech stocks.

Additionally, Bank of America strategists have warned that a “recession shock” could occur in the near future. In conjunction with this warning, former BitMEX CEO and co-founder of 100x Arthur Hayes also predicted that Bitcoin could slump to $30,000 amid a stock market rout.

© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.

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