The past week, ending September 15, was the fifth consecutive week of outflows from investment products. A total of $54 million was withdrawn from various products, indicating that institutional interest in cryptocurrencies remains subdued amidst broader economic concerns.
Over the course of eight out of the last nine weeks, there have been outflows totaling $455 million from these funds. As a result, the net inflow since the beginning of 2023 has been only $51 million.
James Butterfill, Head of Research at CoinShares, said the past week marked the sixth consecutive week when blockchain stocks also experienced investment outflows, totaling $9.6 million.
Bitcoin, as the leading cryptocurrency, continues to be the primary target for outflows. Last week, $45 million was withdrawn from these products, accounting for 85% of the total outflow. There were also outflows from Short Bitcoin products, totaling $3.8 million.
The most negative sentiment was observed in the United States, where 77% of the capital outflows occurred, while the remaining percentage extended to countries such as Germany, Canada, and Sweden.
According to the latest information from analytical company Glassnode, the decline in sentiment is related to the fact that almost all short-term Bitcoin holders are currently at risk.
Glassnode believes that the Bitcoin market is currently experiencing a non-trivial shift in sentiment. Almost all short-term holders are losing their holdings. Several indicators suggest that in 2023, there has been a positive but weak influx of new capital and investors. This indicates ongoing uncertainty due to macroeconomic conditions, regulatory pressure, and liquidity shortages across all markets.
