$400 Million Bitcoin Outflows Stun Crypto Community

The crypto market has witnessed one of the biggest crashes in recent times. Amid this, major Bitcoin (BTC) outflows have stunned the crypto community. It appears that the bearish sentiment is here to stay, and the uncertainty is only increasing among market participants.

According to CoinShares, Bitcoin investment products witnessed outflows of $400 million this past week. Notably, Bitcoin saw these outflows after significant inflows for five weeks consecutively. Meanwhile, short-Bitcoin experienced inflows of $1.8 million. These were the first measurable inflows for them since June.

Sentiment shifts for ETPs

In the broader perspective, digital asset investment products are back to a bearish phase. CoinShares revealed that they witnessed $528 million in outflows. These outflows came for the first time in four weeks. In addition, the trading volumes of these ETPs also saw a sharp decline.

Last week saw $14.8 billion in trading volumes, which is actually lower than the average. The crypto decline on Friday impacted the ETP market as it wiped out almost $10 billion from the total ETF asset under management (AuM). CoinShares said that this downfall in the market can be attributed to the widespread fear of recession in the U.S. markets.

While there are also geopolitical concerns, the overall economic situation in the U.S. has been concerning for investors. The decline in the employment rate, as well as the debate around the rate cuts, has caused investors to sit on the sidelines. This can be seen in the recent data as it shows that there were $531 million outflows for ETPs in the U.S. alone.

Bitcoin price crashes 15%

As of writing this article, Bitcoin is trading at $51,333 after a crash of 15.76% in the last 24 hours. The market capitalization of BTC has also declined 15.65% to $1.01 trillion only. Analysts say that this was one of the biggest crypto crashes in the last one year as millions were liquidated in the last two days.

There were $1.14 billion in long and short crypto liquidations in the last 24 hours, per CoinGlass. Bitcoin witnessed $395.28 million in liquidations, while Ethereum (ETH) witnessed $362.75 million in total liquidations during this time. Overall, the situation is causing concern on the market as investors await a rebound in the coming days.