Recent Weeks See $249 Million Departure from Cryptocurrency Assets

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Mon, 02 Oct 2023, 06:33 PM
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Recent Weeks See $249 Million Departure from Cryptocurrency Assets

Cryptocurrency assets faced $249 million in withdrawals over four weeks, with Bitcoin and Ether seeing significant outflows.

Fri, 15 Sep 2023, 10:44 am UTC

During the week spanning September 3 to 9, $59.3 million was pulled out of cryptocurrency assets, which marks a continuation of a trend that has witnessed $249 million in withdrawals over the past four weeks.

The most notable activity of the past week was centered around Bitcoin (BTC). It saw outflows touching $68.9 million. However, this was somewhat balanced by a $15.2 million inflow into Short Bitcoin and a smaller $0.7 million influx into XRP (XRP).

CoinShares, a company focusing on cryptocurrency insights, pointed out that these outflows may be rooted in apprehensions about regulatory changes and instabilities in the financial markets. They also drew attention to a sharp 73% decline in trading volumes, which dipped to US$754 million over the week.

Solana’s (SOL) successful streak concluded last week. Previously having experienced nine weeks of inflows summing up to $14.1 million, it recently witnessed a reversal with $1.1 million moving out. CoinShares had previously identified it as a favored alternative coin among investors.

Ether (ETH), meanwhile, wasn't spared either. It had outflows amounting to $4.8 million, although this was notably lesser than Bitcoin's numbers. With an accumulated outflow of $108 million this year, CoinShares marked it as an asset that hasn’t been favored much by exchange-traded product investors in 2023.

Region-wise, Brazil was the sole country to see an inflow, albeit a meager $0.1 million. The countries topping the outflow charts were Germany, Canada, and the United States, with respective outflows of $20 million, $17.6 million, and $12.3 million.

Moreover, Switzerland and Sweden also reported significant pull-outs from the crypto market, registering outflows of $7.4 million and $2.3 million, respectively.

With expert analysts projecting a potential decline for Bitcoin's value, possibly even down to the $20,000 mark, it's likely that more funds could be withdrawn from cryptocurrency assets. Present trends indicate that alternative coins might not be in a position to change the outflow trajectory significantly.

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