Bears look to now have a stronghold on the crypto market as bitcoin and ethereum record negative outflows. This trend which started about a month back as not let up as values of digital assets across the crypto space continue to plummet. In this time, the total market cap has plummeted about $500 billion, signaling the start of a bear market, and the outflows from the space corroborate this story.
Digital Assets Record 5th Week Of Outflows
Last week marks the 5th consecutive week of outflows from the crypto market. What started as a trickle at first has now turned into a full-blown flood as net outflows for the week crossed the half a billion dollars mark. This marks overall bearish sentiment among investors who are beginning to retreat from the market due to the declining asset values.
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This time period has been one of the sharpest when it comes to outflows. The last time digital assets saw outflows pass the half a billion dollars mark this quickly was in 2018 after the bull market was over.
Outflows for the week hit a new record with $73 million, the highest outflows ever recorded on a weekly basis. This brought the total for the five weeks of outflows to $532 million. The outflows which began at the end of last year have now ramped up with the steady decline of cryptocurrencies like bitcoin and ethereum. Institutional investors continue to pull out of the market, spelling a period of drawn-out downtrends for the market.
BTC begins recovery trend | Source: BTCUSD on TradingView.com
Bitcoin, Ethereum All See Outflows
The top 2 cryptocurrencies bitcoin and ethereum all recorded outflows for the week. Bitcoin led the charge with a total of $55 million in outflows. This marks four out of the last five weeks that the pioneer cryptocurrency has seen outflows flowing the decline in value. The total outflows for the last five weeks totaled $317 million for bitcoin, while total assets under management (AuM) fell to a one-month low of $35 billion.
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Ethereum followed suit with more outflows. The altcoin has recorded more outflows compared to counterpart bitcoin. While the latter maintained inflows for as long as possible, ethereum had already begun to record outflows. Last week’s outflows brought the digital asset’s total to $230 million, after a consecutive six weeks of outflows. Ethereum’s outflows have brought the asset’s percentage to 1.5% of total assets under management.
Solana however did not record any of the outflows. The altcoin took a complete 180 from the others as it recorded another week of inflows despite the market suffering continuous outflows.
Featured image from Bitcoin News, chart from TradingView.com