In an unexpected twist in the cryptocurrency sector, Bitcoin and Ethereum have seen remarkable capital movements totaling $226 million this past week. Bitcoin faced the larger impact, with $192 million moving away from its market, while Ethereum followed with a net loss of $34 million—its sixth consecutive week of declines. Notably, even positions betting against Bitcoin saw minimal movements, a mere $0.3 million.
Despite the prevailing trend of capital withdrawal, there remains a silver lining as mixed-asset portfolios witnessed a minor uplift, capturing $9 million in new investments. In contrast to the broader trend, cryptocurrencies such as Litecoin and Chainlink defied the odds, securing inflows of $3.2 million and $1.7 million, respectively.
Global Dynamics and Blockchain Stability
For eleven weeks straight, the blockchain sector has grappled with continuous investment withdrawals, this week alone accounting for $9 million. This ongoing skepticism is largely linked to the anticipated repercussions of halving events on cryptocurrency mining firms.
While the US ETF landscape endured significant setbacks with $244 million in withdrawals, other regions displayed resilience and optimism. Canada and Switzerland attracted new funds of $30 million and $8 million, respectively, whereas Germany faced only modest losses.
ETF Dynamics and Bitcoin’s Price Outlook Amid Tax Season
The spot Bitcoin ETF market observed a net outflow of $165 million coinciding with a slump in acquisition activity, especially pronounced during the US tax season. Despite this, the trading vigor remains robust with $2.7 billion recorded in ETF transactions on Wednesday alone.
Bitcoin’s current valuation stands impressively at $65,899.9649, with a 24-hour trading volume of $20.7 billion and a notable 1.38% increase since yesterday, solidifying its dominance with a live market cap of approximately $1.2 trillion.
By Andrej Kovacevic
Updated on 14th July 2024