Last week cryptocurrency funds posted net outflows of $423 million, eclipsing the previous record of $198 million set when crypto markets fell in January.
Crypto asset management firm CoinShares reported on Monday that investors exited cryptocurrency mutual funds at a record pace last week, after bitcoin plunged to its lowest level in 18 months; which highlights the downtrend that has peaked this month.
Last week cryptocurrency funds posted net outflows of $423 million, beating the previous record of $198 million set when crypto markets tumbled in January, and reducing total assets to $36.2 billion.
CoinShares’ James Butterfill notes that the sell-off took place on June 17 (but was reflected in last week’s numbers due to trade reporting delays) and was likely responsible for bitcoin’s sharp plunge on that day. weekend, as prices fell below $18,000 as the cryptocurrency market grappled with a wave of job cuts, talk of impending insolvency of major companies, and a sharp increase in rates of interest by the US Federal Reserve.
Outside of bitcoin, funds invested in other cryptocurrencies saw widespread inflows last week, underscoring the “highly polarized sentiment” among crypto investors, says Butterfill, with Ethereum funds, for example, picking up 11 million dollars and breaking an 11-week losing streak.
Funds shorting bitcoin, meanwhile, saw inflows totaling $15 million in the same week thanks to the launch of the ProShares Short Bitcoin ETF, which debuted Tuesday and marks the first US fund designed to short bitcoin. the largest cryptocurrency in the world.
Government stimulus measures and historically low interest rates fueled the skyrocketing of cryptocurrency prices during the pandemic, but the Fed’s interest rate hikes to rein in rising inflation have since battered sentiment. market overview.
The price of bitcoin, at about $20,700, has fallen more than 70% from an all-time high of about $69,000 in November. Popular brokerage firm Coinbase earlier this month laid off about 18% of its employees, while the company’s billionaire CEO Brian Armstrong warned investors that a potential recession could trigger a prolonged bear market for the cryptocurrencies.
In November, the Nasdaq, of great technological weight, has collapsed 28%. In the same period, the global value of the world’s cryptocurrencies has plummeted 70% to $930 billion from an all-time high of about $3 trillion reached in November. I report Cryptobtcbrowser, news and information agency.