Bitcoin Crash Not Done: CoinShares Analyst Predicts ‘True Correction’ Amid Outflows
June 26 2024 - 2:00PM
NEWSBTC
Bitcoin-based crypto investments have witnessed another week of
outflow in what was an unpleasant week for Bitcoin and other
cryptocurrencies. Bitcoin investors, in particular, were
disappointed as they watched the price of the world’s biggest asset
decline during the week, temporarily falling below $60,000.
According to recent inflow data from CoinShares, this correction
also flowed into crypto investment products. Notably, crypto
investment products registered $584 million outflows last week to
extend outflows to $1.2 billion in two weeks. True Correction Is
Underway For Bitcoin According to the CoinShares report, most of
the outflows were concentrated toward Bitcoin, with the crypto’s
investment products registering $630 million last week. As the
report noted, this outflow sentiment can be largely attributed to a
growing pessimism amongst crypto investors for interest rate cuts
by the FED this year. Furthermore, the continued outflow suggests
that a true correction might be underway for Bitcoin. Related
Reading: Shiba Inu Enters Accumulation Zone Amid 493% In Shibarium
Transaction Fees However, while this correction might be going on,
it might not necessarily translate to a completely negative
sentiment for Bitcoin. Such an inference is made in light of a
corresponding $1.2 million outflow in short Bitcoin products, which
suggests that the majority of investors do not believe that Bitcoin
will continue to decline over the long run. In terms of
geographical location, the US saw the largest outflows, totaling
$475 million. Interestingly, a majority of this recorded outflow
originated from Spot Bitcoin ETFs trading in the US. According to
data, Spot Bitcoin ETFs witnessed outflows every day last week,
causing the lowest trading volume of $6.9 billion in investment
products since their launch in January 2024. Outflows were also
seen in Canada, Germany and Hong Kong at $109.3 million, $23.8
million and $19.3 million, respectively. Ethereum, which had also
been coming from an unpleasant week of price action, wasn’t left
out of the negative sentiment and registered $58 million in
outflows, its biggest weekly outflow in 2024. Deviating from the
outflow trend, many altcoin products witnessed surprising weekly
inflows despite price declines on the spot market. This was headed
by multi-asset products, which saw $98 million in inflows. Solana,
Litecoin and Polygon also had inflows of $2.7 million, $1.3
million, and $1 million, respectively. More Price Correction
Ahead? This week will be crucial in determining whether Bitcoin and
other cryptocurrencies will continue to experience price
corrections. Time will tell if the recent volatility is a sign of
further declines or a temporary dip. However, the price action
observed in the past 24 hours suggests that the correction might be
nearing its conclusion. Related Reading: Analysts Battle Over
Cardano’s Next Move: 12,000% Rally Or 50% Crash? Bitcoin, Ethereum,
Solana, and many other cryptocurrencies have rebounded
significantly, showing notable price increases over the past day.
If sustained in the spot market, this upward trend could
potentially lead to increased inflows into crypto investment
products by the end of the week. Featured image created with
Dall.E, chart from Tradingview.com
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