Cryptocurrency investors are showing a trend of capital outflows despite Bitcoin's (BTC) recent massive price rally. For the last six weeks, net outflows have amounted to $424 million and trend shows no sign of slowing down. CoinShares has hypothesized that this outflow could be due to investors needing liquidation, possibly due to the series of U.S. bank collapses. Meanwhile, Ethereum (ETH) had inflows of $1.3 million, indicating it may be lower liquidity prompting outflows.

In the last seven days, Bitcoin rose almost 30% to over $28,000 - its highest peak in over five months. If BTC breaks the $30,000 range, there could be a strong bull run. However, analysts speculate that retail investors may be taking profits or investors are not willing to part with their holdings yet.

The U.S. has accounted for the majority of outflows over the span of six weeks, followed by Europe and Asia. This has made assets under management for the week go down to the same levels seen in the beginning of the year, wiping out all the inflows up to that point.

In conclusion, the outflow of cryptocurrency assets is a cause for concern despite Bitcoin's surge. Investors may be liquidating assets due to bank collapses, but with Ethereum seeing strong inflows it could be due to low liquidity in the market. The amount of outflows witnessed has put assets back to the same levels seen at the start of the year and is something traders must keep an eye on.



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