Bitcoin Outflows Surge to $95 Million: CoinShares Report Reveals Alarming Trend
- Outflows from Bitcoin (BTC) investment funds rose sharply last week, despite a large increase in spot price.
- Short-bitcoin funds saw record inflows of $35 million for the week.
- Net outflows from the digital asset space came in at $95 million.
Investor Sentiment Worsening
The outflows from bitcoin funds for the week reached $112.8 million, marking slightly improved investor sentiment compared to the week before when $243.5 million left BTC-backed funds, according to new report from CoinShares.Meanwhile, funds backed by Ethereum’s native token ETH saw outflows of $12.7 million last week, a slight worsening from the $11 million of outflows seen the week before.In total for the digital asset space, the net outflows came in at $95 million, helped by inflows into short-bitcoin funds and altcoin-backed funds such as Litecoin (LTC), Solana (SOL), Polygon (MATIC) and XRP.
Reasons Behind Outflows
CoinShares suggested that the outflow could be due to a need for liquidity by large market players. „It is evident this sentiment is contrarian relative to the rest of the crypto market, but it may be driven, in part, by the need for liquidity during this banking crisis,“ said CoinShares in its report.It added that inflows into altcoin-backed funds gives „further credence to the notion that the outflow in larger crypto assets was driven by liquidity needs.“
Bitcoin Price Performance
The spot Bitcoin price rose 27% last week ending at a price of USD$27 973 on Sunday night – its highest level since January 2018.