Investor Indifference Follows Bitcoin’s Break Above $20,000
31 August 2022 - 9:00AM
NEWSBTC
Bitcoin has been seeing a lackluster performance in the last couple
of weeks, and crypto investors have responded in kind to this.
After a couple of weeks of tethering above $20,000, the digital
asset’s price had finally fallen below this important technical
point, triggering outflows in the market. For the past week,
institutional investors have continued to feel the fatigue in the
market, so while there were outflows, they still remain quite
muted. Bitcoin Loses $29 Million Bitcoin outflows have continued
into another week. This has now brought outflows for the digital
asset into three consecutive weeks with no signs of a reversal. The
total came out to $29 million in outflows for the week. It marked
another week where bitcoin had sent the majority of outflows,
although others had recorded outflows. Related Reading: Macro Hold
Tightens As Losses Spill Over To Crypto Market The inflows were
more localized to short bitcoin, which once more speaks to the
bearish sentiment that is brewing among bitcoin investors. Despite
not being large by previous margins, the $1 million into short BTC
shows that institutional investors continue to exercise caution
when investing in the market. It is understandable, given the
stance that the Fed has taken when it comes to the economy. In a
bid to get inflation rates under control, the Fed has taken what is
known as a “hawkish” stance, causing investors to cling tightly to
capital. Outflows Remain The Order Of The Day Outflows were not
only recorded in bitcoin alone, although it was the focus for the
week. The second-largest cryptocurrency by market cap, Ethereum
also saw outflows totaling $1 million for the same time period.
Investors had been very bearish on the digital asset until the
announcement of the Merge changed sentiment. However, it is obvious
that the bullish sentiment did not last very long. Digital
asset investment products, just like bitcoin, have now marked their
third consecutive week of outflows. It saw outflows reaching $27
million for the week. The majority of the outflows had come from
three countries, including the US, Sweden, and Germany, with a
combined total of $26.5 million. Related Reading: New Report Says
Bitcoin Daily Trading Volumes Are Fake, So What’s The Real Number?
Interestingly, minor outflows had flowed into other DeFi platforms
such as Solana, Cardano, Uniswap, Tezos, and Chainlink. Most of the
inflows had come from Brazil, with a total of $1.2 million. The
market, in general, is still struggling despite bitcoin recovering
above $20,000 once more. There is very weak momentum which makes
this a seller’s market. Featured image from Forbes, chart
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