The bull run is slow to show itself: only bright red in the crypto market statistics. And to drive the point home, here are these mass outflows of cryptocurrencies, costing several hundred thousand dollars. Makes you wonder if the predictions of new post-halving highs really make sense.
The dance of billions in the crypto universe
But some crypto analysts maintain that the bull run will indeed be there. However, looking at the stats of previous bitcoin halvings in 2016 and 2020, the major bullish surges only occurapproximately 160 days later the halving of BTC miner rewards. So, should crypto investors remain patient and resist the temptation to sell amid this market consolidation?
Investment flows in the field of cryptocurrencies seem to be booming lately, underlines Cointelegraph. According to the latest reports from CoinShares, no less than 435 million dollars took the lead from crypto investment funds during the previous week, ending on April 26.
An alarming trend seems to be emerging, particularly among cryptocurrency Exchange Traded Products (ETPs), which recorded outflows for the third consecutive week. Meanwhile, the price of bitcoin (BTC) remains strangely stable, loitering in the shallows ofa range at $60,000.
Bitcoin ETFs were particularly hard hit, with a loss of $423 million just after the halving. Meanwhile, the Ether investment products also bore the brunt of the withdrawals, with a $38 million drop, marking their seventh consecutive week of negative flows. Only the Solana and Litecoin ETPs were given a bit of a reprieve, recording net inflows of $4.1 million and $3.1 million, respectively.
According to CoinShares, this financial debacle would be attributable to the “deceleration of entry of new issuers”. The latter only garnered $126 million in admissions last week, compared to $254 million the previous week.
A break before resuming?
Figures from Farside Investors reveal a trend that is surprising to say the least: BlackRock's Bitcoin ETF IBIT recorded zero flows for the first time last week. An anomaly which is not isolated, since other issuers have also seen their flows stagnate in recent weeks, while outputs from Grayscale's GBTC decreased.
These withdrawal movements could well reflect investors' concerns about the economic situation in the United States, with stagflation in their sights. This explosive cocktail of slowed economic growth and sluggish inflation hardly encourages betting on a rate cut by the Fed.
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