The Net Outflow Of The Digital Asset Fund Was $30.4 Million Last Week

Key Points:

• Last week, digital asset investment funds had net withdrawals for the first time in six weeks, totaling $30.4 million.
• Outflows started on April 14, just as Bitcoin reached $30,000, implying that the most recent sell-off resulted from profit-taking.
• Ether received $17 million in inflows, indicating investor confidence after the Shanghai network improvement.

Bitcoin outflows of $53.1 million helped end a six-week streak of inflows into digital asset investment products.

According to the CoinShares weekly report, digital asset investment products had a net outflow of $30.4 million last week, capping a six-week streak of inflows.

Outflows started on April 14, coinciding with Bitcoin surpassing $30,000 for the first time in over a year, implying that the current sell-off was the result of profit-taking, CoinShares reported. Overall outflows for the week as the price of BTC declined by nearly 10%.

There was a net outflow of $53.1 million in Bitcoin investment products, a net inflow of $16.8 million in Ethereum investment products, and a net inflow of $1.5 million in short-selling Bitcoin investment products.

Apart from the main two cryptocurrencies, Polygon received another $1 million in inflows this week.

In the preceding four weeks, the world’s biggest cryptocurrency by market size has received $310 million in inflows.

BTC’s price has lately steadied over $27,000, but it faces stiff resistance above $28,350.

According to recent research by Michael van de Poppe, BTC’s value has the ability to rise if it successfully breaks beyond the $27,800-$28,000 region.

If this happens, BTC may possibly reach $29,200. The cryptocurrency’s upward momentum, however, is dependent on whether it can maintain the breakthrough over the barrier level.

Traders, however, emphasized that BTC remained optimistic, anticipating a possible copycat move of price action from February when BTC/USD burst higher following a period of consolidation. Nevertheless, a new study revealed that hodlers were split on whether to sell into strength, even during BTC’s run above $31,000.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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