Bitcoin has seen significant changes in recent times, driven by changing macroeconomic conditions and investor sentiments. CoinShares reports that last week digital assets saw a significant drop in investment. attributed Several key economic developments.
This included data from the US CPI, FOMC meetings, and Producer Price Index figures. The events caused a sudden surge in Bitcoin’s price. It briefly reached the $7000 mark. swift downturn Adjusted the value back to about $65,000
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BTC faces major outflows while some altcoins attract investment
As of now, the fluctuation is still in Bitcoin’s price This is part of the broader trend of volatility in the digital currency markets. Last week, retail and institutional investors withdrew approximately 600 million dollars from crypto funds. This is a substantial retreat.
CoinShares believes that the trend could be a sign of caution growing, amplify by an “hawkish stance” Investors may have been encouraged to lower their exposure to volatile assets such as cryptocurrencies at the recent FOMC Meeting.
Bitcoin was the cryptocurrency that suffered most, with outflows of $621 million. The silver lining was that there were still some gains. altcoins Ethereum, Litecoin and other coins saw small inflows. Ethereum The altcoin market grew by $13,000,000, indicating a divergent level of investor confidence compared with Bitcoin.
The scenario is mixed, with Bitcoin struggling under the pressure of selling while some altcoins are making marginal gains. The overall effect on the market is palpable. Total assets under management dropped from more than $100 billion down to $94 in a matter of a week.
The trading volumes have also fallen significantly from the average annual volume, which indicates a more cautious attitude by all traders. In terms of regionally, the US saw the largest outflows while countries like Germany had inflows. These results suggest a global reaction to the current economy.
Bitcoin ETFs see mixed fortunes
The sector saw a decline last week, with an average daily net outflow from $190,000,000, according to the latest data. data SoSoValue
Bitcoin’s price dropped sharply in terms of the performance of the market. It reached a record low of $65,398 on Friday. Bitcoin has risen in price today. slightly recovered It is still down 1.1% over the last day, and 5.5% for the entire week.
Samara Cohen BlackRock Chief investment officer has discussed Bitcoin spot ETFs. observed They are attracting a steady but gradual interest despite their slower uptake than anticipated.
Cohen says that currently the vast majority (approximately 80%) of Bitcoin ETF transaction are carried out by “self-directed investors” Online brokerage platforms are a great way to trade.
Cohen said that the iShares Bitcoin Trust is an ETF launched in this year. It has attracted the attention of individual investors, hedge funds, and brokerages as shown by the 13-F documents.
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Cohen, who spoke at the Crypto Summit, said that participation by registered investment advisers is still relatively low.
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Source: www.newsbtc.com