crypto-market

The cryptocurrency market has continued to suffer in the aftermath of the holidays. Top assets such as bitcoin and ethereum have lost large amounts of value, with the broader market also falling to this trend. This has been highlighted by significant sell-offs in digital assets, resulting in even more downtrends. As a result, weekly withdrawals from digital assets have reached new highs, and the sell-offs continue.

High influx statistics for the crypto business dominated the year 2021. Bitcoin’s inflows established a new high, as did those of all digital assets combined. However, by 2022, this has changed dramatically, with outflows becoming the norm. Outflow volumes for digital assets have already reached a new high just two weeks into the new year.

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The CoinShares digital asset fund flows weekly report, which was released on Monday, revealed tragic figures for the cryptocurrency sector. In sum, there were $207 million in withdrawals from investors during the last week, demonstrating that institutional investors are still quite negative on the market. It is the fourth week of market outflows, which have already totaled $465 million.

Market outflows are a continuation of the sell-off trend that began in early December 2021 and has continued into the new year. Investors are nonetheless hesitant, with many withdrawing funds from the market for fear of a further slump.

Compared to other individual assets and products, Bitcoin had the highest outflows for the week. With a total outflow of $107 million, the digital asset lead the crypto market outflows. According to the CoinShares article, this is due to the FOMC minutes, which indicated the US Fed’s concerns over inflation rates, causing investors to fear that the Fed may raise interest rates.

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Ethereum experienced outflows throughout the same week. The altcoin had been experiencing withdrawals towards the end of the year, and last week’s losses took it to a five-week string of outflows totaling $200 million.

Crypto and digital asset-related products struggled across the board, with even blockchain equities investing products seeing outflows. In altogether, these goods cost $10 million to develop.

The crypto market is still struggling in the aftermath of the several declines that have shaken the field. The overall market cap has dropped more than $1 trillion from its all-time high of $3 trillion to its current value of $1.9 trillion.

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