$453 Million Leaves Bitcoin
Bitcoin had been seeing a reversal trend with inflows coming in for the prior week. However, this has only been short-lived as outflows have continued to rock the digital asset. For the last week, that bitcoin had led the outflow trend and the net outflows had come out to $453 million for the digital asset. It is one of the largest outflows ever recorded for the digital asset and has wiped out the majority of inflows on a year-to-date basis.Related Reading | Bitcoin May Not Reclaim All-Time High For Another Two Years, Binance CEO
This comes as bitcoin’s price had continued to fluctuate around $20,000 over the last week. It was expected that the low prices would trigger more inflows into the market for the past week but the opposite has been the case. The total assets under management (AuM) for bitcoin now sits at $24.5 billion, the lowest it has been in more than a year.
BTC recovres above $21,000 | Source:Its short-bitcoin counterpart had gone a different path this week where inflows had been the order of the day. The $15 million that flowed into it is said to be a result of the first US-based short investment product which launched last week. Given that the older short-bitcoin investment products had recorded outflows for the same time frame, all fingers point towards the launch.
North American Outflows Grow Worse
The outflows have been localized to one specific region and that is the North American corner of the market. CoinShares notes that the majority of the outflows had come from Canadian exchanges. Specifically, one provider. Most of the outflows had been seen on 17th June but did not show up until last week. It shows that these sell-offs had been a trigger for bitcoin’s decline to $17,700.Related Reading | Crypto Liquidations Settle As Bitcoin Recovers Above $21,000
The last time record outflows were seen was at the start of the year when $198 million had left the market in a single week in January. The outflows recorded for last week have surpassed this by more than 100%, although the ratio to the assets under management remains low compared to the bear market outflows of 2018 where outflows had reached as high as 1.6% of total AuM.
Featured image from MARCA, chart from TradingView.com
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