BITCOIN BLEEDS $630M AS CRYPTO FUND OUTFLOWS ACCELERATE FOR SECOND WEEK STRAIGHT

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bitcoin-usd/”>BITCOIN BLEEDS $630M AS CRYPTO FUND OUTFLOWS ACCELERATE FOR SECOND WEEK STRAIGHT 🚨💸

BITCOIN BLEEDS $630M AS CRYPTO FUND OUTFLOWS ACCELERATE FOR SECOND WEEK STRAIGHT

Good heavens, it seems the crypto crowd is having a spot of bother. For the second week running, investors have been pulling their funds out of the market, leaving a trail of $584 million in outflows in their wake. And if that wasn’t enough, the two-week total stands at a whopping $1.2 billion. One wonders what’s got them all so spooked.

According to CoinShares’ Head of Research, James Butterfill, the culprit behind this trend is none other than the uncertainty surrounding interest rate policy in the US. Ah, yes, the old “interest rate conundrum” – it’s enough to give even the most seasoned investor the vapors.

But that’s not all, folks! The report also notes a significant drop in market participation, with exchange-traded products (ETPs) globally recording a paltry $6.9 billion in traded volume for the week. That’s the lowest since those US spot Bitcoin ETFs launched in January, if you can believe it.

Bitcoin Leads Outflows While Altcoins Show Pockets of Strength

It appears the United States is where the action is – or rather, where the outflows are. A whopping $475 million in funds were pulled out of US-based funds, followed closely by Canada with $109 million. Germany and Hong Kong also got in on the action, with $24 million and $19 million in respective outflows. But, of course, there are always exceptions to the rule – Switzerland and Brazil managed to buck the trend, with inflows of $39 million and $48.5 million.

And then, of course, there’s Bitcoin – the belle of the ball, or rather, the belle of the outflow. A staggering $630 million in weekly outflows, with short Bitcoin products also seeing minor outflows totaling $1.2 million. One wonders if anyone’s actually convinced that the price will go down.

Ethereum also took a hit, with $58 million in outflows. But, oh dear, it seems some investors are having a spot of fun – Solana, Litecoin, and Polygon managed to attract modest inflows of $2.7 million, $1.3 million, and $1 million respectively. One supposes it’s all about diversification, old chap.

We believe this is in reaction to the pessimism amongst investors for the prospect of interest rate cuts by the FED this year.

Notably, the decrease in ETP trading volume could also reflect a broader lull in investor engagement as markets wait for further direction. One supposes it’s all about patience, old chap.

While Bitcoin and Ethereum were the primary drivers of the recent outflows, the inflows into certain altcoins and multi-asset products point to nuanced sentiment rather than broad-based risk-off behavior.

Featured image created with DALL-E, Chart from TradingView

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2025-04-01 03:43