- Outflows rose from $62 million the previous week to $88 million, up nearly 42%.
- Ethereum marked its largest single week of outflow since its merger last year.
According to the latter report digital asset funds posted a seventh straight week of net outflows, reflecting market uncertainty, according to crypto asset manager CoinShares. Outflows rose from $62 million the previous week to $88 million, up nearly 42%.
According to the study, institutional investors’ sell-offs were driven by macroeconomic factors, with further rate hikes by the US Federal Reserve keeping them on their toes.
Source: Coinshares
Read Bitcoin [BTC] Price forecast 2023-2024
BTC and ETH are leading the carnage
The majority of outflows last week came from Bitcoin [BTC] at $52 million, bringing the eight-week outflow total to $254 million. On the other hand, the short Bitcoin fund, which bets on Bitcoin’s decline, registered a net outflow of $1.1 million. It was significantly lower than last week’s $6.3 million figure.
BTC selling pressure can also be attributed to Binance.US’s decision to suspend USD trading channels on its platform from June 13. Thus, this results in investors cashing in their holdings to withdraw dollars.
Similarly, the second largest coin by market cap, Ethereum [ETH], recorded outflows totaling $36 million last week. This was the largest week of outflow since the merger last September.
However, the silver lining was the performance of other altcoins as there was a small inflow to Litecoin [LTC]Solana [SOL]and XRP. While the impending LTC halving has attracted investors, the XRP community has been excited about a successful outcome in the legal dispute with the US Securities and Exchange Commission (SEC).
SOL’s case was surprising given that it was one of several altcoins alleged to be securities in SEC’s lawsuit last week.
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All eyes on the Fed meeting
The crypto space’s overall market cap fell 37% over the past week, with the SEC lawsuit wiping out nearly $17 billion, according to CoinMarketCap.
However, the new week showed early signs of recovery. This was because BTC was trading at $26,138.43, a small increase of 0.70% at the time of writing.
Source: CoinMarketCap
The market’s next test is the June 13 and June 14 meeting of the Fed. Experts are divided on the outcome of the meeting, with some predicting another rate hike of 25 basis points. However, others suggest the central bank could skip it this month.