Crypto Outflows at Record $423 million Coinshares Reports - Are We near Bottom

Cryptocurrency prices seem to be stabilizing, with Bitcoin now holding the $20K support level. However, massive outflows were recorded over the past week before this stability, which could have triggered Bitcoin’s plunge to 2020 lows of below $20,000.

Crypto outflows reach $423M: CoinShares

Last week, digital asset investment products recorded massive outflows of $423 million, according to a report by CoinShares. This is the largest amount of outflows recorded since the crypto market entered a bear market. The other massive outflows happened in January this year when the amount reached $198 million.

According to CoinShares, this is not the largest number of outflows against the total assets under management. CoinShares said the outflows against AUM reached a record high of 1.6% in February 2018. Last week, the outflows reached the third-highest of 1.2% of the AUM.

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The cryptocurrency market has been in a bearish state since the beginning of the year. The largest record also reached $198 million in January this year. The report showed that the outflows mainly came from crypto social trading platforms in Canada and one major provider.

Most of these outflows happened on June 17, but these results were shown during the figures provided last week because there were delays in the trade reporting. These outflows were caused by Bitcoin’s drop to $17,760.

The data also shows that these outflows were focused on Bitcoin. Bitcoin’s prices tend to affect the rest of the cryptocurrency market, and as Bitcoin plunged to $17,000 earlier this week, the rest of the market also dropped, with the global market cap falling below $900 billion.

The net outflows for Bitcoin came in at $453 million during the week. This erased nearly all the inflows recorded yearly. These outflows have left the total Bitcoin AUM at $24.5 billion. This is the lowest level reached since the start of the year.

Short-Bitcoin products also recorded inflows of $15 million following the launch of a short investment product last week. The short-investment products launched earlier also saw inflows. Ethereum also recorded inflows of $11 million after the first 11 consecutive weeks of inflows.

Bitcoin holds $21K

Bitcoin’s price has held the $21K levels over the past few days. The coin’s market cap has also held a value above $400 billion. Moreover, the market sentiment could turn bullish following the recent announcement by the US Securities and Exchange Commission (SEC) chair that Bitcoin could be classified as a commodity.

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