Bitcoin (BTC) has witnessed massive outflows amid the current cryptocurrency bloodbath. According to him CoinShares Research Blog, Bitcoin recorded outflows of $630 million last week. While this has raised concern in the community, the situation appears to be getting worse.
Bitcoin (BTC) has witnessed massive outflows amid the current cryptocurrency bloodbath. According to him CoinShares Research Blog, Bitcoin recorded outflows of $630 million last week. While this has raised concern in the community, the situation appears to be getting worse.
Altogether, digital asset investment products recorded outflows of $584 million. Notably, this was the second consecutive week of capital outflows observed in the market. This dramatic drop in digital asset investment products comes amid macroeconomic concerns.
Investors appear to be worried about the Federal Reserve’s upcoming decision on interest rate cuts. There is a negative sentiment in the market as investors have started ignoring risk assets like Bitcoin and altcoins.
Ethereum (ETH), the market-leading altcoin, also recorded outflows of $58 million last week. This negative trend for ETH is crucial because it highlights how traders have become bearish for the overall market.
Bitcoin price collapse
Amid these huge outflows of digital asset investment products, the price of Bitcoin also plummeted today. The price of BTC has plummeted 4.80% to $61,184, for CoinMarketCap. This is a worrying situation as the leading cryptocurrency has failed to rise significantly after the recent halving.
Many were expecting a major rally after the Bitcoin halving event. Historical patterns suggest that BTC continues to rise after such events. However, this time the market has not witnessed this trend.
Although bearish sentiment prevails in the market, some still suggest that Bitcoin does not start a rally right after the halving. They anticipate that Bitcoin will take time and may initiate this anticipated rally in the long term.
Notably, today’s Bitcoin crash comes amid recent statement from the defunct Mt. Gox crypto exchange. The statement revealed that the exchange will begin refunding stolen assets to its users starting next month. These payments will be made in Bitcoin and Bitcoin Cash (BCH).
