Home Analysis Fifth consecutive weekly outflows point to crypto market fragility

Fifth consecutive weekly outflows point to crypto market fragility

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Analyst coin share He stressed that the cryptocurrency market saw its fifth consecutive week of outflows, with total losses this week reaching $32.1 million.

CoinShares sourced data from digital asset investment providers such as Grayscale and ProShares that cater to institutional and accredited investors.

Head of Research at CoinShares, James Butterfillcommented that this was due to “”.Poor sentiment centered on BTC. ”

Cryptocurrency market suffers 5th consecutive week of capital outflows

The graph below shows consecutive cryptocurrency outflows from week 16. Total outflows during this period amounted to $232 million.

2023 has seen more outflow weeks than inflow weeks, with week 10 (starting Monday, March 6) being the year’s most significant weekly outflow, nearly $270 million during this period exceeded.

Early March was marked by bank failures, with Silvergate, Signature Bank and Silicon Valley Bank failing in the current high interest rate environment.

sauce: CoinShares.com

After that period, Bitcoin’s price recovered, rebounding from a low of $22,390, ending the week starting March 13 at $28,140, ​​and surpassing $31,000 a month later. Analysts believe this is due to changes in market sentiment on hard assets.

Most recently, reports of U.S. regulator hostility and uncertainty over the U.S. debt ceiling debate have hit cryptocurrency in general.

Germany had the highest outflow

In terms of flows by asset, bitcoin accounted for the biggest loss, with $32.7 million in the 20th week. Ethereum and short bitcoin also suffered losses, but their rates were significantly lower at $1 million and $1.3 million respectively.

Flow by crypto-asset
sauce: CoinShares.com

Further analysis by country revealed that Germany caused the most outflows, accounting for 75% of the weekly outflows. The United States followed with $5 million and Switzerland with $3.3 million.

Flow by country
sauce: CoinShares.com

CoinShares said the outflow trend is related to a significant drop in trading volume in both the institutional and spot markets.

“Volume for the week totaled $900 million, 40% below the average for the year. Broad market volume on trusted exchanges reached $20 billion for the week, the lowest level since the end of 2020. .”

The article “Five consecutive weeks of outflows point to vulnerabilities in cryptocurrency market” was first published on CryptoSlate.

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