Altcoin
Altcoins Defy Trends as Bitcoin Faces $600 Million in Outflows: What’s Next? — TradingView News
The Bitcoin market has recently witnessed significant changes, influenced by macroeconomic factors and changing investor sentiment. Last week, digital asset investment products saw substantial outflows, which CoinShares attributed to several major economic updates.
These included the release of US CPI data, the Federal Open Market Committee (FOMC) meeting and Producer Price Index (PPI) data. These events appeared to trigger a rapid rise in the price of Bitcoin, briefly pushing it towards the $70,000 mark before a rapid decline brought the valuation back to around $65,000.
Market Changes: BTC Faces Major Outflows as Some Altcoins Attract Investment
So far, this Bitcoin price fluctuation is part of a larger pattern of volatility that has characterized the digital currency market. Last week alone, institutional and retail investors withdrew approximately $600 million from crypto funds, marking a significant retreat.
CoinShares suggests this may signal a growing trend of caution, amplified by an “aggressive stance” at the recent FOMC meeting, which may have encouraged investors to reduce their exposure to volatile assets such as cryptocurrencies.
Bitcoin, particularly the hardest hit, suffered outflows totaling $621 million. Despite this, there has been a silver lining as altcoins such as Ethereum, Litecoin, and others have seen smaller inflows. Ethereum led with a $13 million increase, suggesting divergent investor confidence in altcoins versus Bitcoin.
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This scenario presents a contrasting view in which Bitcoin struggles under selling pressure while some altcoins gain marginal traction. Meanwhile, the overall impact on the market has been palpable, with total assets under management dropping from more than $100 billion to $94 billion in one week.
Trading volumes also fell significantly from the annual average, indicating a cautious approach by traders at all levels. Regionally, while the United States bore the brunt of outflows, countries such as Germany experienced inflows, suggesting a diversified global response to the current economic climate.
Bitcoin ETFs see mixed fortunes
Despite a steady increase in overall net inflows into U.S. spot Bitcoin exchange-traded funds (ETFs), which have reached $15.11 billion in recent weeks, the sector saw a decline last week with net outflows of $190 million per day, based on data from SoSoValue.
In terms of market performance, Bitcoin’s value has fallen dramatically, hitting a low of $65,398 last Friday. However, as of today, Bitcoin price has recovered slightly to $65,552, although it still shows a decline of 1.1% over the past day and 5.5% over the week.
Speaking about Bitcoin spot ETFs, BlackRock Chief Investment Officer Samara Cohen noted gradual but steady interest in them, despite their slower-than-expected uptake.
According to Cohen, currently, the majority of Bitcoin ETF transactions, around 80%, are conducted by “self-directed investors” using online brokerage platforms.
Cohen added that the iShares Bitcoin Trust (IBIT) is one of the ETFs launched this year, attracting attention from individual investors, hedge funds and brokerages, as noted in recent 13-F filings.
However, participation by registered investment advisors remains relatively low, Cohen discussed at the recent Crypto Summit.
Featured image created with DALL-E, chart from TradingView