“It’s difficult to pinpoint the exact reason behind this, aside from the aggressive rhetoric from the US Federal Reserve and the recent share price decline,” writes CoinShares.

Last week, institutional investors lost $133 million worth of bitcoin (BTC) investment products, the biggest outflow in a week since last June.

According to the latest edition of CoinShares Weekly Digital Asset Fund Flows Report, the total digital asset fund outflow for the week ended Friday was $120.1 million. The large Bitcoin outflow was marginally offset by an unexpected $38 million inflow of funds for FTX token (FTT) products.

Last week’s outflow of BTC funds worth $132.7 million brings the month-to-date outflow to $310.8 million for April.

The last time BTC funds saw such a level of outflow in a week was during a strong bearish trend in June 2021, driven by a major FUD in the news including Tesla stopping BTC payments for its cars due to Environmental concerns and China’s deployment halted cryptocurrency. dismantling ban.

CoinShares noted in the report that there doesn’t seem to be a strong indicator as to why a similarly bearish investment sentiment resurfaced over the past month, but pointed to a few potential factors:

“It’s hard to pin down the exact reason behind this, apart from the aggressive rhetoric from the US Federal Reserve and recent rate cuts.”
Like many other leading assets and various stock market indices, the price of BTC has suffered significantly over the past 30 days, falling about 18.2% to $37,970 at the time of writing. Many observers attribute this to fears that inflation and the upcoming Federal Reserve rate hike will cause BTC to fall further.

More broadly, the total month-to-date (MTD) outflows for all digital asset products tracked by CoinShares was $326.1 million, suggesting that institutional investors were looking to take risk with crypto investing across the board.

“This does not reflect the same bearish sentiment seen earlier this year, although it is close to the $467 million observed outflow. Regionally, emigration was fairly evenly distributed between America at 41% and Europe at 59%.

See Also: 3 Reasons Bitcoin Price Stays at $38,000

Bitcoin’s closest rival for the number one spot in crypto, ether (ETH), has also suffered from bearish sentiment lately, with products that offer access to ETH seeing outflows of $25 million and MTD outflows of $82.3 million.

On the other hand, funds associated with crypto exchange and NFT platform FTX FTT received $38 million in inflows, but since FTT funds are categorized as “Other,” it’s not clear if that’s part of a longer-term trend. Notably, the price of FTT is also down 24.5% over the past 30 days.

Investment products Terra and Fantom also received small inflows of $390,000 and $250,000, respectively.

Source: CoinTelegraph