Investors have pulled money out of digital assets for a third week – the longest run of outflows in over 3 years

Investors have pulled money out of digital assets for a third week - the longest run of outflows in over 3 years

  • Investors pulled money out of digital assets for the third week running, a CoinShares report shows.
  • This is the longest series of consecutive outflows since February 2018 last week, over three years ago.
  • Outflows totalled $79 million across cryptocurrencies and were led by bitcoin.
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  • Investors have pulled money out of digital assets for the third week running, making this the longest series of consecutive outflows since February 2018, a CoinShares report published on Monday showed.

    The report, which analyses institutional digital asset flows, found that overall outflows totalled $79 million last week and were led by bitcoin, which has now experienced six consecutive weeks of investment being pulled. Last week, bitcoin outflows came to $89 million as bearish sentiment around the world's biggest cryptocurrency continued to dominate markets.

    Bitcoin was last down 27.1% over the past seven days to Tuesday, 9:47 am E.T. based on CoinGecko data, having fallen below $30,000. Six weeks ago in early May, when the outflows tracked by CoinShares began, bitcoin was changing hands for nearly twice that amount, at around $58,000.

    Outflows from coins linked to the ethereum network totalled $1.9 million last week, following a drop of $12.7 million the week before.

    "As a percentage of assets under management it represents 0.14%, implying most of the negative sentiment has been focussed on bitcoin. Weekly trading volumes in ethereum investment products have fallen by 80% since the May highs," the report noted.

    Ether, the main cryptocurrency that runs on the ethereum network and the second largest cryptocurrency by market size, was last down 32% in the seven days to Tuesday and was last around at $1,761.50, according to CoinGecko. When digital assets overall began to experience net outflows three weeks ago, ether tokens were worth around $2,300 – they rose to as much as $2,893.65 in the first week of June before falling again – around the same time as CoinShares first noted outflows from tokens on the ethereum network.

    Many networks that run smaller digital tokens, including litecoin, binance and bitcoin cash did not register any significant fund flows last week, a pattern which continued from previous weeks. Ripple's XRP token saw net inflows of $0.8 million after experiencing outflows of $2.8 million the week before while polkadot products gained $1.2 million and an additional $0.3 million were invested into cardano-based tokens such as ADA.

    In line with the sell-off in the likes of bitcoin and ether over the past few weeks, the smaller altcoins have been pummeled. As of Tuesday, 9:47 AM E.T, binance's BNB coin had lost 36.5%, XRP was down 40.1%, DOT had lost 47.6% and ADA was down 34.7% compared to a week earlier.

    Read the original article on Business Insider

    Source: markets.businessinsider.com

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