Bitcoin funds posted the biggest weekly outflow after June 2021. Institutional investors saw a loss of $133M in Bitcoin investment products. This is the biggest outflow and the tech cycle suggests more pain ahead for Bitcoin.
The biggest cryptocurrency by market value slipped below $39,000 after facing rejection higher than $40,000 last Thursday.
The Digital Asset Funds Flow reported that the total outflow of digital asset funds came to around $120.1M. There was a marginal offset of outflow as $38M came in from FTX Token products (FTT).
This $132.7M outflow from BTC increases the total outflow in April to reach $310.8M.
The previous instance of Bitcoin’s high level of outflow in one week at this level was in the course of a powerful bearish trend witnessed in June last year. It was caused by major instances of fear, uncertainty, and doubt (FUD). That included the rolling out of the crypto mining ban by China and Tesla banning Bitcoin payments for their cars over concern at its environmental costs.
Cryptocurrencies Across Board Face Slide: Not Limited To Bitcoin
Coinshare reported that no indicator would justify similar strong bearish sentiments among investors. But it did note several factors that could have led to the slide in prices. That includes what is termed the hawkish posturing emanating from the Federal Reserve plus the recent decline in prices.
Like other conventional stock market indices and other top assets, BTC prices have declined significantly in the past month. It has dropped approximately 18.2% and stands at a low of $37,970.
Most onlookers have linked this decline in prices with fears that the upcoming rate hike in interest by the Federal Reserve and inflation will lead to a further decline in the Bitcoin price.
The overall outflow calculated on a month-to-date basis for every digital asset revealed a total of $326.1M. It suggests that major institutional investors are wary to keep risks on the table when it comes to all cryptocurrencies, and it is not limited to Bitcoin.