Crypto Investment Products Experience Continued Outflows: A Closer Look

The Streak Continues: Six Weeks of Outflows

In a rather concerning development for crypto investors, digital asset outflows from crypto investment products marked their sixth straight week ending on September 24. According to data from CoinShares, the total outflow reached a notable $9 million last week, forcefully questioning the zeal of investors in the digital asset realm.

Bitcoin and Ether on the Decline

Bitcoin (BTC) isn’t having the best of times either, experiencing outflows for the third consecutive week, which amounted to $6 million. Meanwhile, short Bitcoin positions also felt the pinch, with outflows totaling $2.8 million. Ether (ETH), trying to keep up with Bitcoin’s disappointing dance, pulled off its own sixth straight week of outflows, tagging $2.2 million to its name. It seems that even the most prominent cryptocurrencies are struggling to maintain investor confidence.

Altcoins Buck the Trend

In a surprising turn of events amidst the mainstream crypto struggle, altcoins such as XRP and Solana have shown signs of life with inflows of $0.66 million and $0.31 million, respectively. This shift indicates a growing interest in the altcoin space, perhaps suggesting that investors are looking for hidden gems away from the big players like BTC and ETH. Could this be the dawn of the altcoin era? Only time will tell!

A Tale of Two Markets: Europe vs. the U.S.

The sentiment seems markedly different on either side of the pond. European crypto investment products enjoyed an inflow of $16 million, whereas their U.S. counterparts faced a downturn with $14 million in outflows. The stark contrast can largely be attributed to the regulatory chaos that has enveloped the U.S. with the SEC’s recent crackdown on crypto companies. It makes one wonder if the U.S. will ever catch up to Europe in the crypto race.

Trading Volumes Hit a Snag

The market woes don’t stop there. Weekly trading volumes have plunged below $820 million, a good deal beneath the average of $1.16 billion in 2023. This dip is perhaps indicative of the overall bearish pressure weighing on crypto’s shoulders lately. Even with the U.S. Federal Reserve’s recent decision to maintain interest rates, Bitcoin’s price remains stubbornly stuck under the $27,000 resistance level. Furthermore, delays concerning the Mt. Gox creditor payouts haven’t added any spark to the otherwise gloomy sentiment. Can someone call in a crypto therapist?