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Coinshares' data reveals that for the eighth consecutive week, a total of $88 million was withdrawn from digital asset investment products, indicating a continued trend of capital outflow from crypto funds.
During the eight-week period, a cumulative amount of $417 million has been withdrawn from the cryptocurrency market, coinciding with significant price drops across various cryptocurrencies. This downturn comes after a promising beginning to the year. For instance, Bitcoin (BTC) closed the previous week at approximately $26,000, experiencing a considerable decline from its mid-April peak of nearly $31,000.
Last week, Bitcoin experienced a withdrawal of $52 million, contributing to a total outflow of $254 million over the past eight weeks. Ethereum, the second-largest cryptocurrency in terms of market value, witnessed a significant outflow of $36 million. This marked the largest weekly withdrawal since the Merge event occurred last year.
There were modest increases in investments flowing into altcoins such as Litecoin, XRP, and Solana.
“We believe this is monetary policy related, with currently no clear end in sight to interest rate rises, leaving investors cautious,” stated CoinShares. Regulatory policies also likely influenced the situation, as the recent lawsuits by the SEC against Coinbase and Binance acted as a catalyst for the latest decline in the crypto market.
Regulatory policy, on the other hand, might become less prominent this week as several significant macroeconomic data points are scheduled to be released. These include the U.S. inflation report on Tuesday and the outcomes of the latest U.S. Federal Reserve policy meeting on Wednesday.
