Bitcoin Leads As Markets Sees Record Outflows. Bear Market Incoming?
December 21 2021 - 2:30PM
NEWSBTC
Bitcoin and altcoins have not had the best week according to
reports coming out of the market. The crypto market as a whole has
been enjoying months of continuous inflows following hot on the
heels of the recent market rally. It has pushed crypto-assets such
as bitcoin towards new highs as inflows had hit a new record
alongside assets under management. But it seems that this is
changing. Coming off the back of what was 17 consecutive weeks of
inflows, the market is now seeing movement in the opposite
direction. While assets such as ethereum had previously recorded
outflows at various times, they had been isolated to a select few.
Now the whole market is seeing its first week of outflows after
four months of inflows, setting a record at the same time. Related
Reading | Millennial Millionaires Are The Most Bullish On
Crypto, Survey Finds Largest Record Outflows The total amount of
outflows for last week came out to a total of $142 million. This
marked the first week of outflows after a 17-week inflows streak
that brought assets under management towards record highs. Not only
was this the first week of outflows following over four months of
inflows, but it is also the largest weekly outflow from the crypto
market on record. This follows an impressive rally from the crypto
market where major cryptocurrencies touched towards a new high.
There have been sell-offs all across the market as investors have
taken profit and institutional investors are not left out. However,
the outflows, despite being a record high, represent only a small
total (0.23%) of the asset under management and are also meager
compared to the outflows of 2018 that touched as high as 1.6% of
total AuM. The total inflows for the year had reached a record high
of $9.5 billion, almost 50% higher than the record that was set in
2020 of $6.7 billion. So despite the outflows, inflows for the year
still remain at a record high. CoinShares also notes that the
crypto market is not the only one that has recorded outflows
either. Risk assets have all seen outflows after the U.S. Fed had
released its statement on tapering. Bitcoin Leads Outflows Bitcoin
took the lead for the asset with the most outflows for the week.
The digital asset had seen its price plummet back to below $50,000
since hitting its all-time high of $69K but had continued to
maintain inflows in the weeks following that. This marks the first
outflows for over 17 weeks but remains firmly below outflows levels
recorded in June that touched as high as $150 million. Related
Reading | Struggling Prices Beats Bitcoin Expectations Down
From $100K To $50K Ethereum has alternated between inflows and
outflows for the last 17 weeks. The second-largest cryptocurrency
also saw record outflows for the week with a total of $64 million
in outflows as it continues to counter bitcoin’s outflows. Solana,
Polkadot, and multi-asset investment products were spared of the
onslaught as they saw $6.7 million, $2.5 million, and $1.5 million
in inflows respectively. BTC recovers above $48K | Source: BTCUSD
on TradingView.com Featured image from Wikipedia, chart from
TradingView.com
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