Cryptocurrency investment products witness continuous outflows amid market uncertainty By Investing.com

On Monday, the cryptocurrency market continued its trend of increasing uncertainty, with investment products related to digital assets, including Bitcoin and Ethereum, experiencing a sixth consecutive week of net outflows. Last week, Bitcoin-related investments saw a net outflow of $5.9 million, while Ethereum-linked investments recorded an outflow of $2.2 million. Bitcoin short-selling investment instruments also registered a net outflow of $2.8 million.

The total trading volume for these digital asset investment products was significantly low last week, amounting to only $820 million. This marked a notable decline from the average yearly trading volume of $1.3 billion, mirroring the broader slowdown in digital asset market activity.

Bitcoin, the leading cryptocurrency, has been experiencing minor outflows for three consecutive weeks, totaling $6 million. Additionally, short-Bitcoin products have seen outflows of $2.8 million. This suggests that investors are slowly reversing their short positions following a brief inflow of $15 million earlier in the month.

Ethereum has not been spared from the trend either, with six straight weeks of outflows amounting to $2.2 million. However, there seems to be growing interest in specific alternative cryptocurrencies (altcoins), as demonstrated by the inflows into XRP and Solana which amounted to $0.66 million and $0.31 million respectively.

From a geographical perspective, Europe has been somewhat of a bright spot in this uncertain crypto market climate with a net inflow of $16 million last week. Some investors are viewing recent regulatory challenges as potential opportunities. Conversely, the United States recorded a net outflow of $14.1 million, signifying persisting apprehensions among American investors.

Investors in the digital asset market remain cautious as they continue to monitor regulatory changes and strategically adjust their portfolios accordingly.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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