Bitcoin Sees Outflows for Third Straight Week

Stronger than expected macro data weighs on crypto sentiment.

JamesButterfill310x310
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Head of Research and Investment Strategy
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Reviewed by: James Butterfill
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Edited by: James Butterfill

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]

James Butterfill has over 19 years of experience in fund management, investment banking, economics and asset allocation, gained most recently as an investment strategist at CoinShares. Previously, he was head of research at ETF Securities, with prior experience as a multi-asset fund manager and investment strategist at Coutts & Co., HSBC & ING Barings. James is a regular media commentator, and frequently appears on Bloomberg TV, CNBC, BBC and other broadcast outlets. Investment Week awarded him best ETF Eesearch and best FX Research in 2016 and 2017, respectively. James is currently an investment strategist at CoinShares, writing research white papers on investment themes, identifying investment opportunities and helping investors understand the digital asset world.