This week, the cryptocurrency market saw a massive sell-off. Worth more than $3.15 billion pass or pass Exchanges with a net bias for inflows accounting for $1.6 billion (50.8%). In fact, it was the largest exchange-related trading volume since October of last year.
like a surprise?
As cryptocurrencies continue to lose support, blockchain analysts at CoinShares have discovered an interesting mix of investor activity. James Butterfeel, May 9 Publishing Volume 79: Digital Asset Fund Flow Weekly Report covering these attributes. Digital asset investments totaled an astonishing $40 million inflow last week.
Investors took advantage of substantial price weakness to add to their positions. Or rather ‘buy deep’. This was a signal that investors were using the market to buy exchange-traded Bitcoin products at a discount. Cryptocurrency products traded on exchanges such as the Grayscale Bitcoin Trust (GBC) are knock down It is down 19% in the last 5 days compared to a 25% drop for BTC.
James Butterfill, Head of Research at CoinShares claimed,
“Interestingly, we have historically never seen the surge in investment trading activity typically seen during periods of extreme price weakness. It is too early to say whether this marks the end of four weeks of negative emotions.”
While the crypto drama unfolds, you should rather wait and watch. Investors panic, but the problem remains. What is the future path?
some light at the end
The largest coin, BTC, traded near the $31,000 mark, receiving a staggering 1.47% correction in 24 hours. However, holders still believed in King Coin.
Bitcoin saw a total inflow of $45 million. But some investors also covet profits. The short bitcoin fund posted the second-largest inflow of $4 million this year, with assets under management reaching $45 million.
Interestingly, despite the record, the asset that favors long bitcoins is still far more important than shorter bitcoin offerings. The $45 million short product represents 0.15% of the $30 billion asset under management in the long Bitcoin product.
Well, reports of replacement tokens mostly had red markings with a few exceptions. Ethereum, the largest altcoin, saw a total outflow of $12.5 million last week, resulting in a total outflow of $270 million so far. In addition to this, Polkadot suffered the same fate as a $4 million leak.
The exception is: Solana. The only altcoins to see measurable inflows totaled $1.9 million last week.
How BTC is on the brighter side significant improvement From a record $132 million leak to the current figure.