On Monday, the cryptocurrency market continued its trend of increasing uncertainty, with investment products related to digital assets, including Bitcoin and Ethereum, experiencing a sixth consecutive week of net outflows. Last week, Bitcoin-related investments saw a net outflow of $5.9 million, while Ethereum-linked investments recorded an outflow of $2.2 million. Bitcoin short-selling investment instruments also registered a net outflow of $2.8 million.
The total trading volume for these digital asset investment products was significantly low last week, amounting to only $820 million. This marked a notable decline from the average yearly trading volume of $1.3 billion, mirroring the broader slowdown in digital asset market activity.
Bitcoin, the leading cryptocurrency, has been experiencing minor outflows for three consecutive weeks, totaling $6 million. Additionally, short-Bitcoin products have seen outflows of $2.8 million. This suggests that investors are slowly reversing their short positions following a brief inflow of $15 million earlier in the month.
Ethereum has not been spared from the trend either, with six straight weeks of outflows amounting to $2.2 million. However, there seems to be growing interest in specific alternative cryptocurrencies (altcoins), as demonstrated by the inflows into XRP and Solana which amounted to $0.66 million and $0.31 million respectively.
From a geographical perspective, Europe has been somewhat of a bright spot in this uncertain crypto market climate with a net inflow of $16 million last week. Some investors are viewing recent regulatory challenges as potential opportunities. Conversely, the United States recorded a net outflow of $14.1 million, signifying persisting apprehensions among American investors.
Investors in the digital asset market remain cautious as they continue to monitor regulatory changes and strategically adjust their portfolios accordingly.
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