Bitcoin Witness $478 Mln Outflows As Grayscale Outflow Abates

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In the ever-dynamic world of cryptocurrency investments, recent data from CoinShares sheds light on significant outflows, particularly in Bitcoin, totaling a staggering $500 million. Notably, Grayscale’s massive outflows of $2.2 billion last week, while still substantial, are showing signs of subsiding.

In addition, the report highlights contrasting trends, with newly issued US ETFs witnessing robust inflows of $1.8 billion. As the crypto market navigates these fund flow dynamics, the impact on prices and investor sentiment becomes a focal point of discussion.

Bitcoin Outflow Amid Grayscale’s Easing Exodus

Cryptocurrency investment products globally witnessed a substantial outflow of $500 million, with a specific focus on key regions. Notably, the United States, Switzerland, and Germany experienced outflows of $409 million, $60 million, and $32 million, respectively, the CoinShares report showed.

Notably, the downturn, triggered by significant outflows from Grayscale, amounted to $5 billion since January 11 and $2.2 billion last week, prompting further outflows in various regions. However, there are indications that Grayscale’s outflows are tapering, offering a potential stabilization in the market, the report added.

Bitcoin, the largest crypto by market cap, faced substantial outflows amounting to $478 million. Notably, this downturn, attributed to Grayscale’s significant outflows, contributed to the overall bearish sentiment.

However, on a month-to-date (MTD) basis, Bitcoin witnessed a net inflow of $791.4 million, suggesting ongoing market resilience despite recent challenges. In contrast, short-bitcoin strategies saw inflows totaling $10.6 million last week, showcasing diverse investor sentiments within the crypto space.

Also Read: India Faces Uproar For Crypto Tax Cut Ahead Of Budget 2024

Altcoin Faces Turbulence While Blockchain Equities Gains

While Bitcoin grappled with outflows, several other altcoins also went through a topsy-turvy scenario last week. The CoinShares report showed that altcoins such as Ethereum, Polkadot, and Chainlink experienced varying degrees of outflows, totaling $39 million, $0.7 million, and $0.6 million, respectively.

In contrast, blockchain equities saw inflows of $17 million, indicating sustained interest in the broader blockchain technology sector. The crypto landscape remains dynamic, with fund flows playing a crucial role in shaping market trends. As the first month of 2024 comes toward an end, market participants closely monitor these developments for insights into potential shifts in investor sentiment and market dynamics.

Also Read: MANTA Price Jumps 62% After the Successful Manta Network Launch

The post Bitcoin Witness $478 Mln Outflows As Grayscale Outflow Abates appeared first on CoinGape.

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