The cryptocurrency market in the last week recorded outflows totaling $207 million, which is the highest level on record. The outflow will continue this week too as prices continue to tumble.
There have been four consecutive weeks of outflows since mid-December 2021. It has reached $465 million. According to CoinShares report, the outflows totaling USD 107 million seen last week were triggered by the Federal Reserve’s minutes. Bitcoin registered an outflow of USD 107 million, while Ethereum recorded outflows of USD 39 million last week. This brought the five-week run of outflows to $200 million.
Fearing a hike in interest rates, investors have been pulling out their digital assets. There has been greater investor activity than usual in the past four weeks. Moreover, withdrawals from multi-asset funds of up to $37 million show that investors were rash in selling positions. Blockchain equities investment products also had their fair share of outflows, totaling $10 million.
Meanwhile, Carol Alexander professor of finance at Sussex University had warned of a bitcoin market crash in 2022. She warned investors to pull out of bitcoin because its price was set for a crash. Alexander believes BTC has no fundamental value and is more of a toy than an actual investment asset. She also highlighted 2018, the year when bitcoin had plunged to $3,000 and then up to $20,000 a few months later.
But whatever the warnings and speculations, bitcoin enthusiasts are sticking to their guns. They know and understand that bitcoin is highly volatile but at the end of the end, it is a modern-era asset. And they are ready for its ups and downs.