Cryptocurrencies Post Net Outflows Last Week, But Outflows Are Witnessed on Friday – CoinShares

FILE PHOTO: Representatives of Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin cryptocurrencies are placed on a PC motherboard in this illustration taken.
Representatives of the cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on a PC motherboard in this illustration taken, June 29, 2021. REUTERS / Dado Ruvic / File Photo

December 6, 2021

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) – Crypto products and funds received $184 million in net inflows as of last week, data from digital asset manager CoinShares said on Monday.

However, Friday’s price weakness resulted in an outflow of $40 million that day, CoinShares said. For the year, total inflows totaled $9.1 billion, slightly below the record peak of $9.5 two weeks ago.

Bitcoin, meanwhile, attracts a net $145 million, the 12th consecutive week of inflows. It saw an outflow of $42 million on Friday, as it suffered from investor anxiety amid a sharp price drop.

Traders said the weekend’s drop in prices was linked to a broad move away from riskier assets in the traditional market due to worries about the Omicron coronavirus variant.

As the price fell, investors who bought bitcoin on margin saw the exchanges close their positions, triggering a flurry of selling. According to Coinglass, a series of retail-focused exchanges closed over $2 billion in long bitcoin positions on Saturday.

“The crypto market has become very volatile. The Omicron variation and pressure on the TradFi (traditional finance) market also seem to affect bitcoin,” said Ruud Feltkamp, ​​managing director at the Cryptohopper automated trading bot.

“Conversely, during the 2017 bull market you also saw some drops of up to 38% of its value… Usually the more scared you are to get in, the better. And when you feel overconfident, that’s usually a good time to step out. ”

Most recently, Bitcoin was down 0.8% at $49,093. Since hitting a record high of $69,000 on November 19, bitcoin has dropped 32%.

CoinShares also noted that bitcoin volume surged to $15 billion last Friday, well above the typical $8 billion daily average during November and December.

Ethereum also saw a total inflow of $25 million, but, like bitcoin, saw a small inflow of $4.7 million last Friday.

Polkadot, the coin that facilitates different blockchains to work together, saw an inflow of $3 million last week, with most of that inflow coming in the second half of the week.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Alison Williams) Cryptocurrencies Post Net Outflows Last Week, But Outflows Are Witnessed on Friday – CoinShares

Caroline Bleakley

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