Bitcoin

Crypto Assets Record Outflows For A Fourth Week On Regulatory Woes, Strong Dollar

2 Mins read

Join Our Telegram channel to stay up to date on breaking news coverage

The crypto industry was hit by outflows for a fourth consecutive week amid pessimism over regulatory woes and a strong dollar, CoinShares said.

Outflows reached $59 million last week, bringing total outflows over the four-week period to $294 million, representing 0.9% of total assets under management, according to CoinShares’ latest Digital Asset Fund Flows Weekly Report.

Crypto Outflows Show Negative Sentiment Among Institutions

Bitcoin suffered the most outflows of $69 million last week. Investors anticipate BTC’s price to drop further as short-Bitcoin inflows hit $15 million. It was the largest single week of inflows since March 2023.

Inflows were reported in short investment products, indicating negative sentiment towards digital assets. Trading volumes also plunged by 73% compared to the previous week to $754 million.

Ethereum’s outflows during the week totaled $4.8 million, bringing the year-to-date outflows to $108 million. Ethereum’s YTD outflows represent 1.6% of the total assets under management, making it the least preferred asset by exchange-traded product (ETP) investors this year.

Solana and multi-asset investment vehicles reported outflows of $1.1 million and $0.8 million respectively. XRP’s inflows continued to increase to reach $0.7 million last week.

Blockchain equities were not spared from the negative sentiment across the market, with $10.8 million in outflows. The asset class recorded its fifth consecutive week of outflows.

Regulatory Woes For Crypto Industry, Strong Dollar Drive Increased Outflows

CoinShares attributed the shift towards short investment products to fears over crypto regulations and a strengthening US dollar.

The US crypto regulatory framework has shifted significantly. Republican Senator Bill Hagerty recently said crypto firms were moving overseas because of the “terrible environment.”

The US securities regulator has brought lawsuits against top cryptocurrency exchanges Binance and Coinbase. The regulator has also classified several cryptocurrencies as securities, including Cardano and Solana.

The SEC’s failure to approve a spot Bitcoin ETF is also concerning. Grayscale’s landmark victory against the SEC late last month raised hopes of a spot Bitcoin ETF. Still, the regulator continues delaying its decision to approve or reject the pending applications.

The US dollar index is also strengthening at the 104 level. The US dollar recently reached a six-month peak amidst tightening monetary policy. The Federal Reserve has hiked interest rates severally this year to tame the rising inflation.

Bitcoin has an inverse relationship with the US dollar. As the digital asset is seen as a hedge against inflation, a strengthening currency and low inflation rates are bound to reduce interest in Bitcoin.

The next Federal Open Market Committee (FOMC) is happening on September 19-20, and if more hikes are implemented, digital assets might perform poorly.

Related Stories:

Wall Street Memes – Next Big Crypto

Wall Street Memes
  • Early Access Presale Live Now
  • Established Community of Stocks & Crypto Traders
  • Featured on BeInCrypto, Bitcoinist, Yahoo Finance
  • Rated Best Crypto to Buy Now In Meme Coin Sector
  • Team Behind OpenSea NFT Collection – Wall St Bulls
  • Tweets Replied to by Elon Musk

Wall Street Memes


Join Our Telegram channel to stay up to date on breaking news coverage



Source link

Related posts
Bitcoin

Iggy Azalea MOTHER Coin Surges 58% On DWF Labs Collaboration Announcement

2 Mins read
The famous token inspired by Australian singer Iggy Azalea, the Mother Iggy (MOTHER) token on the Solana (SOL) blockchain, experienced a significant…
Bitcoin

Final Fantasy Publisher Square Enix Invests in Soccer Metaverse Game on the Polygon Blockchain

1 Mins read
Soccerverse, a massively multiplayer football management game, has successfully raised $3.1 million in a strategic funding round led by renowned games industry…
Bitcoin

US Congressman Introduces Bill for Detained Binance Executive's Release

2 Mins read
TLDR U.S. Representative Rich McCormick introduced a bill to secure the release of Binance executive Tigran Gambaryan, who has been detained in…

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *