Ethereum Hits $126M in Year-to-date Outflows, Alts Remain Steady
It marks the second largest weekly crypto redemptions this year
Blockworks exclusive art by axel rangel
key takeaways
- Investors pulled $134 million from cryptocurrencies last week
- Even amid Bitcoin 2022, the largest digital currency posted an outflow of $131.8 million
Investors yanked $135 million from cryptocurrency investment products last week, marking the second largest week of outflows of 2022, according to data from digital asset investment firm CoinShares.
“Trading volumes were low for investment products, trading $2.5 billion for the week versus the year average of $2.9 billion,” James Butterfill, head of research at CoinShares wrote in the report. “We believe price appreciation the previous week may have prompted investors to take profits last week.”
Bitcoin led the decline with $131.8 million in outflows, even as Miami’s Bitcoin 2022 conference dominated headlines.
“Bitcoin is under pressure as bond market sell-off resumed, prompting a widespread selling of risky assets,” Edward Moya, senior market analyst at OANDA, said. “The Bitcoin 2022 conference was more of a party than a game-changing event that will spur the next round of massive investment into cryptos.”
Bitcoin is struggling as rising rates lead to a de-risking moment for many traders, Moya added, mirroring a broader trend analysts are watching in big tech equities.
“Bitcoin volumes do not suggest any significant stress amongst investors, with investment products comprising only 7.6% of total bitcoin volumes, just above the 7% long-term average,” Butterfill wrote. “However, overall Bitcoin volumes remain lower than average at US$2.3bn per day versus US$3bn (on trusted exchanges).”
Ethereum lost $15.3 million last week, putting the second largest cryptocurrency at $126 million in outflows so far in 2022.
Alternative coins solana, litecoin, cardano and others posted in-flows — with solana, a top ethereum competitor, leading the pack with $3.7 million in new money.
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