The cryptocurrency market has seen a huge sell-off this week. With a net bias towards flows, more than $3.15 billion in value in or out of exchanges, which accounted for $1.60 billion (50.8%). In fact, it recorded the largest total exchange-related volume peak since October last year.
Like a surprise?
As cryptocurrencies continue to lose ground, blockchain analysts at CoinShares observed an interesting mix of investor activity. James Butterfil published Volume 79: Digital Asset Fund Flows Weekly Report on May 9 which covered these features. An astonishing total of US$40m was seen last week in digital asset investment products.
Investors took advantage of the sharp weakness in prices to increase positions. Or rather ‘buying the dip’. This was a sign that investors were taking advantage of the market in exchange-traded bitcoin products at lower rates. Shares are down 19% over the past five days, compared to BTC’s 25% drop in exchange-traded crypto products, such as Grayscale Bitcoin Trust (GBTC).
James Butterfil, Head of Research at CoinShares, stressed,
“Interestingly, we have not seen the same increase in investment product trading activity as we typically see historically during periods of extreme price weakness. It is too early to tell whether this marks the end of four weeks of negative sentiment. is. “
You need to wait and watch as the crypto drama unfolds. Investors are in panic, but the question remains – what is the way forward?
finally some light
The largest coin BTC suffered a massive 1.47% drop in 24 hours as it traded near the $31k mark. But the holders still had faith in the king’s coin.
Bitcoin saw a total inflow of US$45m. However, some investors also make profits. The Bitcoin Short Fund recorded its second strongest inflow of the year, with $4 million, thus, reaching $45 million in assets under management.
Interestingly, despite the record, assets in favor of long bitcoin still outnumber short bitcoin products. $45 million in short products is 0.15% of the $30 billion in assets under management in long bitcoin products.
What about Altcoins?
Well, reports of alternative tokens have mostly red markings with one exception. Ethereum, the largest altcoin saw a total outflow of US$12.5m last week, thus, bringing the total outflow to US$207m year-on-year. Furthermore, Polkadot suffered a similar loss, recording $0.4m.
Here’s the exception: Solana. The only altcoin that saw measurable inflows totaled US$1.9m last week.
On the bright side, it is important to note how BTC has made a significant correction from the record $132m outflow in the current figure.