7 0
Crypto Funds Experience $3 Billion Outflows Over Three Consecutive Weeks
Significant Outflows in Crypto Funds
- Crypto-focused funds experienced substantial outflows, with $2 billion exiting last week, marking the largest withdrawal since February.
- Total withdrawals over the past three weeks have reached $3.2 billion.
Bitcoin and Ethereum Withdrawals
- BTC saw $1.4 billion withdrawn, while ETH faced $689 million in outflows.
- The average daily outflows as a percentage of assets under management (AuM) have reached unprecedented levels.
- Total AuM has declined by 27%, now standing at $191 billion.
Market Sentiment and Analysis
- Bitcoin remains in a bear market, trading below the 50-week exponential moving average (EMA), currently above $10,000.
- Three potential scenarios for Bitcoin's future:
- A drastic descent into lower prices, considered unlikely due to oversold conditions.
- A short-term rally testing the 50-week EMA before a downturn.
- Potential recovery to reclaim the 50-week EMA by year-end, influenced by macroeconomic factors.
Concerns Over Strategy's Position
- Strategy, formerly known as MicroStrategy, faces risks if Bitcoin falls below their average purchase price of just below $80,000.
- Possible forced liquidations could drive Bitcoin prices toward $10,000 or lower.
- Skepticism surrounds crypto market sustainability, reflecting on past strategies encouraging extreme investment measures.
As of now, Bitcoin trades at $84,700, significantly below its all-time high of $126,000 earlier in October.