- Volume across the broader crypto market remained low, nearly 50% below the year average.
- A majority of outflows last week were from Bitcoin totaling $46 million.
According to the latest report by CoinShares, digital asset investment products recorded a second straight week of net outflows. This could be a response to the likelihood of further interest rate hikes by the U.S. Federal Reserve.
Outflows over the last week increased to $72 million from $30 million a week before, as bearish sentiment lingered in the market. The interest rate hike was expected at the Federal Reserve’s policy meeting on 3 May.
Coinshares added that volume across the broader crypto market remained low, nearly 50% below the year average. On the other hand, exchange-traded product (ETP) volumes hit $1.7 billion in the last week, 16% above the year average.
Is your portfolio green? Check the Bitcoin Profit Calculator
BTC and ETH feel the pinch
The majority of outflows last week were from Bitcoin [BTC], totaling $46 million, while short Bitcoin also experienced its biggest outflows since December 2022. These stood up to a total of $7.8 million.
Macroeconomic triggers like the collapse of First Republic Bank, the second-biggest bank failure in U.S. history, deterred investors from putting their money into speculative assets.
Similarly, the second-largest coin by market cap, Ethereum [ETH], logged outflows totaling $19 million last week, marking its biggest week of outflows since the Merge in September last year. This was surprising as interest in ETH, particularly its staking services, had resumed with Nansen data showing deposits outpacing withdrawals over the past week.
On the other hand, altcoins like Solana [SOL] and Cardano [ADA] managed to buck the trend, registering minor inflows of $0.2 million and $0.1 million respectively.
Drop in OI
Bitcoin fell nearly 3.92% in the last week, as per CoinMarketCap data. The negative sentiment permeated the futures markets as BTC’s Open Interest (OI) dropped by 3% over the past week. This settled BTC at $11.29 billion as of press time, data from Coinglass showed.
A decrease in OI coming alongside a drop in price typically indicates that bearish sentiment prevailed in the market.
How much are 1,10,100 ETHs worth today?
The negative sentiment was further reflected in the Longs/Shorts Ratio, which stayed below 1 over the last week. This indicated that a higher chunk of investors put their bets on price losses as compared to price gains.