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Bitcoin (BTC) has witnessed massive outflows amid the ongoing crypto bloodbath. Per the CoinShares Research Blog, Bitcoin saw $630 million in outflows this past week. While this has raised concerns in the community, the situation seems to be getting worse.
Collectively, the digital asset investment products saw $584 million in outflows. Notably, this was a second consecutive week of outflows seen in the market. This dramatic fall in digital asset investment products comes amid macroeconomic concerns.
Investors appear to be worried about the upcoming decision of the FED regarding interest rate cuts. There is negative sentiment on the market as investors have started to ignore risk assets like Bitcoin and altcoins.
Ethereum (ETH), the leading altcoin on the market, has also seen $58 million in outflows this past week. This negative trend for ETH is crucial as it highlights how traders have turned bearish for the broader market.
Bitcoin price collapse
Amid these huge outflows for digital asset investment products, the price of Bitcoin also collapsed today. The BTC price has plummeted 4.80% to $61,184, per CoinMarketCap. This is a concerning situation as the leading cryptocurrency has failed to surge significantly after the recent halving event.
Many were expecting a huge rally after the Bitcoin halving event. Historic patterns suggest BTC continues to surge after these events. However, the market has not witnessed this trend this time around.
Although bearish sentiment prevails on the market, some still suggest that Bitcoin does not ignite a rally right after the halving. They anticipate that Bitcoin will take time, and it may start this anticipated rally in the long term.
Notably, today’s Bitcoin crash comes amid the latest statement from defunct crypto exchange Mt. Gox. The statement revealed that the exchange is going to start repayments of stolen assets to its users from next month. These repayments will be done in Bitcoin and Bitcoin Cash (BCH).
Arman Shirinyan
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team