Crypto Investment Products See Sixth Consecutive Week of Outflows

Bitcoin and Ethereum Lead the Way

Crypto investment products experienced their sixth straight week of outflows, adding to concerns about the market's bearish sentiment. Data from Coinshares showed that digital asset outflows reached $9 million in the week ending on Sept. 24.

Bitcoin (BTC) saw outflows for the third consecutive week, with a total of $6 million flowing out. Short-bitcoin positions also experienced outflows, with $2.8 million leaving the market. Ethereum (ETH) also registered its sixth straight week of outflows, losing $2.2 million in investor interest.

Altcoins Gain Popularity

While Ethereum saw continued outflows, other altcoins such as XRP and Solana gained traders' trust. XRP saw net inflows of $0.66 million, while Solana had net inflows of $0.31 million. The report noted that investors are becoming more discerning in the altcoin space, choosing to invest in specific coins like XRP and Solana.

Regional Divergence in Sentiment

The report also highlighted a divergence in sentiment between European and U.S. traders. European crypto investment products saw inflows of $16 million, while U.S.-based products experienced outflows of $14 million. This discrepancy was attributed to uncertainty surrounding crypto regulations and recent actions taken by the U.S. Securities and Exchange Commission (SEC) against crypto companies.

Trading Volumes Decline

The report revealed a significant drop in weekly trading volumes, falling below $820 million. This is well below the average volume of $1.16 billion so far in 2023.

Market Sentiment and Price Action

Overall, the CoinShares report reflects the bearish sentiment in the current market. The price of Bitcoin remains stuck under the key resistance level of $27,000 and has remained stagnant since the recent FOMC meeting, where the Federal Reserve decided not to raise interest rates. The delay in the Mt. Gox creditors' pay out also influenced market sentiment last week, although Bitcoin was largely unaffected by these events.