Market Shrouded in Gloomy Sentiment

Niti998

First Wave of Sell-Off! Bitcoin ETF Sees Weekly Net Outflows for the First Time, Market Shrouded in Gloomy Sentiment

Bitcoin has always been an extremely volatile asset. After reaching a historical high of $73,000 this month, its price fell to $62,000 last week, triggering countless liquidations.

Meanwhile, Bitcoin ETFs saw net outflows for the first time last week. According to Coinshares, a total of $942 million flowed out of 11 Bitcoin ETFs last week, breaking the trend of seven consecutive weeks of inflows totaling $12.3 billion.

Grayscale's funds saw outflows of over $2 billion in just one week, leading the sell-off in Bitcoin ETFs. Coinshares analysis suggests that recent adjustments in Bitcoin spot prices have left investors hesitant, resulting in a significant reduction in ETF inflows, which were unable to offset the massive outflows from Grayscale.

Furthermore, there is negative sentiment towards Bitcoin ETFs in global markets, with outflows of $860 million in the US market, and outflows in Sweden, Switzerland, Hong Kong, and Germany totaling $37 million, $25 million, $35 million, and $4 million respectively. Only Brazil and Canada continue to see net inflows.

Coinshares analyst James Butterfill pointed out that people see the huge drop in Bitcoin prices and decide to postpone their investments, as no one wants to catch a falling knife.

Waiting for the wind

Grayscale's Bitcoin ETF was the first trench abandoned by investors in this round of capital retreat. Due to its high management fees and some investors' bankruptcy after being liquidated, Grayscale saw record outflows last week.

However, the decline of Bitcoin ETFs cannot solely be blamed on Grayscale. Adam Sze, head of Global X Digital Asset Products, pointed out that any asset reaching a historical high will experience profit-taking, or at least signs of slowing purchases.
The key to revitalizing Bitcoin ETFs may not only lie in the stability of Bitcoin spot prices but also in whether institutional investors show more interest. Kyle Da Cruz, director of VanEck Digital Asset Products, pointed out that Bitcoin ETFs are still a nascent asset class, and sticky capital has yet to enter.

Meanwhile, investment products for Ethereum, Solana, and Cardano tokens also suffered outflows last week, but there were also positive performances from altcoins. In the past week, Polkadot, Avalanche, Litecoin, and XRP received varying amounts of inflows.

Observers and investors are now waiting to see if the $900 million withdrawal is just a minor profit-taking issue or a precursor signal to a downturn in the global crypto market.

Jatin255

Bitcoin has surged past 70,000 again.

Jiger955

There are various gloomy sentiments prevailing at the moment.

Kamal531

If you have the funds, you should consider buying more as it falls.