On days when the crypto market is bleeding, the latest report from CoinShares shows that investment products in the sector have seen record weekly inflows of $207 million.
Long winter
This is the fourth straight week of negative outflows since December, now totaling $465 million, according to the report. Additionally, the sluggish outlook also overshadows companies investing in cryptocurrencies and related assets. The report states,
“Blockchain equity investment products have not escaped the negative sentiment, with inflows and outflows totaling US$10 million for the week.”
Weak market
Bitcoin has recorded a sharp 40% drop since its all-time high of over $69,000 last November. Now as the coin desperately clings to the critical support of $40,000, after a slight drop, it is worth noting that such a severe drop was last seen at the end of September 2021. Dan Held of Kraken recommends looking at the bigger picture rather than the short-term—weaknesses in a recent tweet.
When in doubt, zoom out. #Bitcoin pic.twitter.com/Jbqn4BwYtn
– Dan Held (@danheld) January 9, 2022
Regarding cash flow, CoinShares noted that Bitcoin outflows totaled US$107 million as of last week. It adds the reason stating,
“[BTC Outflows] was a direct response to the FOMC minutes, which revealed the US Federal Reserve’s concerns about rising inflation and investors’ fears about rate hikes. “
Sell whales?
The current downward spiral is led by a decline that has become the ‘longest continuous decline since 2018’. The question, however, is whether the whales will come out of the bloodshed. Today, Whale Alerts noted that an anonymous wallet made a transfer of nearly $40 million in BTC to crypto exchange Coinbase amid the turmoil.
946 #BTC ($39,292,429) transferred from unknown wallet to #Coinbasehttps://t.co/Bfv9pKaLO6
– Whale alert (@whale_alert) January 11, 2022
Will the trend continue?
Julius de Kempenaer, senior technical analyst at StockCharts.com, told Forbes that these drops show Bitcoin’s bearish bias, adding
“The drop support below 45,500 confirms the ongoing BTC downtrend after completing a double top on a break below 60k.”
However, this may not have been Bitcoin’s biggest test at the time. Valkyrie CEO Leah Wald feels that Bitcoin’s biggest test will come amid a global sell-off, which will see a major correction in equities and other traditional assets during the year. next or next year. She said in an interview,
“The real hit or the break is coming and I hope we don’t see a bear market or a crypto winter anytime soon, but one day it will, and that’s just the cycle.” of the market. “
At the time of writing, there are poles fear on the Bitcoin Fear and Greed Index.