Bitcoin dropped below $33,000 on Tuesday after losing more than 10% of its value in a single day. The recent negative sentiment across the crypto market is causing a sharp drop in weekly inflows related to Bitcoin investment products.
According to the latest digital asset fund flows report published by CoinShares, BTC investment products saw outflows worth $141 million last week, the largest weekly outflows on record. Overall, crypto investment products saw outflows worth $94 million last week.
Ethereum, the world’s second-largest digital currency, saw a positive trend despite the latest negative sentiment in Bitcoin. ETH-related investment products attracted $33 million during the recent week. Ethereum remained the most popular altcoin for institutional investors.
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“Despite the net outflows, we believe it implies an early turn in sentiment since May, where most product providers were seeing net outflows and sentiment was broadly negative. The negative sentiment was again focused on Bitcoin which saw outflows totaling US$141m, marking the largest single week of outflows on record. The outflows represent 8.3% of the net inflows seen this year and remain minimal on relative terms to the outflows seen in early 2018,” CoinShares mentioned in the report.
Bitcoin and Cryptocurrency Market
Bitcoin has seen immense volatility in the last 4 weeks. The price of the world’s largest digital currency is down by more than 40% since 10 May. BTC is currently hovering at around $32,800 with a market cap of more than $600 billion. Overall, the market cap of digital currencies stands at around $1.5 trillion. CoinShares mentioned that the recent outflows were mainly related to Bitcoin investment products but other cryptocurrencies including XRP, Cardano, and Polkadot have seen consistent inflows during the last few weeks. “XRP saw inflows totaling US$7m, the largest since April, while both Cardano and multi-asset products saw inflows of US$4.5m and US$2.7m respectively. Digital asset investment product trading volumes highlight investors remain cautious in Bitcoin with weekly volumes having fallen 62%,” the report added.