Bitcoin Sees Outflows for Third Straight Week

Takeaways

• Digital asset investment products saw minor outflows totalling US$2m. Although this masks broader negative sentiment as the largest inflows were into short investment products.
• Bitcoin saw outflows for the 3rd consecutive week totalling US$12m, while short-bitcoin saw inflows totalling US$10m.
• We believe this reaction reflects nervousness amongst US investors prompted by the recent stronger than expected macro data releases.

Digital asset investment products saw minor outflows totalling US$2m in what was a low volume week for investment products. Although this masks broader negative sentiment as the largest inflows were into short investment products. Opinions remain polarised though, with the US seeing outflows totalling US$14m, where recent macro data has increased fears amongst investors that the US Federal Reserve (FED) will be more hawkish than expected.

Bitcoin saw outflows for the 3rd consecutive week totalling US$12m, while short-bitcoin saw inflows totalling US$10m, although this negative sentiment was solely from the US. We believe this reaction reflects nervousness amongst US investors prompted by the recent stronger than expected macro data releases, but also highlights its sensitivity to the regulatory crackdown in the US.

Interestingly, Ethereum has remained relatively insulated from the recent negative sentiment, seeing only US$0.2m of outflows last week. Minor inflows were seen in Polygon, Solana and Cardano totalling US$0.6m, US$0.5m and US$0.4m respectively.

Blockchain equities didn’t escape the negative sentiment either, seeing outflows totalling US$7.2m, being predominantly growth focussed companies, they remain vulnerable to expectations on interest rates.

Contact James Butterfill at [email protected]