Bearish Market Sentiment Accelerates Cryptocurrency Outflows

The cryptocurrency market is down by more than 20% in the last 7 days. The overall market cap of digital currencies lost nearly $300 billion within a single week. Large crypto investors have started adjusting their investment portfolios amid the recent bearish market sentiment.

According to the latest digital asset fund flows report published by CoinShares, the cryptocurrency investment products saw outflows worth $79 million last week, which is the third consecutive week of digital asset outflows. CoinShares mentioned that the recent weekly numbers indicate the longest bearish sentiment in crypto investment products since 2018.

Outflows were mainly focused on Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term as more than $89 million worth of investment left BTC-related products in the last week. The world’s largest cryptocurrency saw its sixth consecutive week of outflows.

“Bitcoin outflows now total US$487m this year representing 1.6% of assets under management. Sentiment remains mixed as evidenced by some providers seeing inflows while others continue to see outflows. Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term, the world’s second-largest cryptocurrency, saw minor outflows of US$1.9m, combined with outflows from the previous week now totaling US$14.6m. As a percentage of assets under management, it represents 0.14%, implying most of the negative sentiment has been focused on Bitcoin,” CoinShares mentioned in the report.

During the market crash of 2018, the cryptocurrency investment products saw outflows for seven consecutive weeks.

Ethereum and Cryptocurrency Market

ETH remained the worst-performing cryptocurrency among the top 5 in the last 7 days as its price plunged approximately 26%. CoinShares highlighted the impact of ETH’s price action on its trading volume. “Weekly trading volumes in Ethereum investment products have fallen by 80% since the May highs. Bucking the trend last week were multi-asset investment products which saw inflows of US$10m last week. Year-to-date net inflows now total US$351m, representing 16% of assets under management,” CoinShares added.

Currently, the total market cap of digital currencies stands at around $1.3 trillion, which is down by more than 7% in the last 24 hours.