Crypto Outflows Continue for Second Week Straight
Cryptocurrency investment products and funds experienced outflows for the second week in a row, according to data from CoinShares.
The whole of the crypto markets experienced outflows worth $21 million over the week ending June 11. This has contributed to the total outflows of $267 since the middle of May, when cryptocurrencies began their recent difficulties. This amount represents 0.6% of total assets under management (AUM).
Ether and Bitcoin outflows
Ethereum’s native token Ether was hit especially hard last week. Over that period it posted its largest outflow yet, of $12.7 million, according to CoinShares data. Despite this loss, the token has still been one of the strongest performers this year. This is also demonstrated by Ether’s inflows last week, which CoinShares said were mixed, “implying mixed opinions among investors.” Although Ether is up 4% in the last 24-hours at $2,598. However, that is nearly a 40% drop from its record $4,380 on May 12.
Meanwhile, outflows for Bitcoin seemed to have diminished. Despite seeing $10 million in outflows, this pales in comparison to the previous record week of $141 million. Additionally, trading activity in bitcoin products rose 43% from the previous week.
Investors remain bullish
Bitcoin seems to be regaining its feet, in light of a recent affirmation from Elon Musk. In replying to an article saying he was pump and dumping Bitcoin, he said Tesla sold only 10% of its Bitcoin holdings to demonstrate its liquidity. Musk then reiterated that Tesla would resume allowing Bitcoin transactions once it was mined with mostly clean energy.
Although Bitcoin experienced a bounce at this statement, Musk had earlier included this caveat in his original announcement.
Even though that initial tweet sent Bitcoin into a tailspin, throughout this bearish period, several investors have remained bullish. Earlier, Dan Morehead, co-chief investment officer at Pantera Capital, described this downward period as a buying opportunity.
Meanwhile, on Monday, he urged investors to resist closing their positions, despite bitcoin trading 36% below its 11-year exponential trend. “Bitcoin generally goes way up, anyone that has held bitcoin for 3.25 years has made money,” Morehead said.
Additionally, Bitcoin stalwart Michael Saylor, CEO of MicroStrategy, continues to pursue his aggressive Bitcoin strategy. Within the past two days MicroStrategy sold an additional $500 million in secured notes to purchase more Bitcoin, then announced selling $1 billion in stock for the same purpose.
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