Bitcoin saw a significant pullback, resulting in most of the last week's crypto outflows.
In the past week, ending August 4th, the crypto market witnessed outflows amounting to $107 million. This marks a continuation of a declining pattern observed over the previous three weeks, accumulating a sum of $134.8 million in outflows.
At the center of this decline stands Bitcoin (BTC), contributing a significant $111 million in outflows, overshadowing other crypto assets' performance.
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CoinShares' weekly report, "Digital Asset Fund Flows," suggests that such behavior might stem from a wave of "profit-taking," especially following a period of substantial gains. Interestingly, a month before this downturn, a remarkable $742 million flowed into crypto funds. Out of this, Bitcoin made an impressive 99%.
While Bitcoin's downturn is apparent, it's worth noting that Solana's (SOL) inflows increased, amounting to $9.5 million, a considerable jump from the prior week's $0.6 million. XRP investment also saw a modest boost with a $0.5 million inflow. However, Ether (ETH) seemed to maintain its downtrend, witnessing outflows of $5.9 million, nullifying its earlier inflows.
The same report highlighted a decline in weekly trading volumes for investment products, sitting below the average seen throughout the year. Furthermore, broader market volumes on crypto exchanges plummeted by 62% compared to their typical average.
On a regional level, the positive notes came from Australia and the United States, recording inflows of $0.3 million and $0.2 million, respectively. On the other hand, Canada led with an outflow of $70.8 million, closely followed by Germany, recording a withdrawal of $28.5 million.
Despite Bitcoin's overall positive yearly performance since January, there's a belief that its subdued performance, especially under the $30,000 mark since April, may be a reflection of the current market's unpredictable nature.
While the crypto landscape has seen considerable ebbs and flows, especially with major players like Bitcoin, the sentiment seems cautiously optimistic, offering a glimpse of hope for stakeholders.
