Last week, there was a small outflow of $147 million in crypto asset investment products. The fact that economic data came in above expectations is seen as the main reason behind this outflow. Investors focused on Bitcoin and realized an outflow of $159 million in this asset, while there was an inflow of $2.8 million in short Bitcoin positions. In multi-asset investment products, a positive flow was observed for the 16th consecutive week with an inflow of $29 million.
Investor sentiment “weakened”
Last week, the outflow observed in crypto asset investment products was recorded as $147 million. The biggest factor behind these outflows is shown as the economic data coming in above expectations and the resulting decrease in the possibility of central banks cutting interest rates. Investors seem to have reduced their risk appetite, especially considering that major interest rate cuts are now less likely. This weakened investor sentiment was also reflected in transaction volumes. Transaction volume in investment products increased by only a small 15% on a weekly basis, reaching $10 billion. However, there was a significant decrease in trading volumes in the broader cryptocurrency markets. This situation shows that crypto investors are generally more cautious and cautious about evaluating their assets.
When examined regionally, different trends in the markets are striking. Canada and Switzerland showed a more positive picture compared to other markets. Canada recorded an inflow of $43 million and Switzerland recorded an inflow of $35 million, and these countries joined the bull market trend. However, there were significant outflows in countries such as the US, Germany and Hong Kong. While an outflow of $209 million was observed in investment products in the US, outflows of $8.3 million and $7.3 million were recorded in Germany and Hong Kong, respectively. This data shows that the approach to cryptocurrency investments varies in different geographies.
Focus on Bitcoin and Ethereum increased
Investors focused especially on Bitcoin last week. While a total outflow of $159 million was experienced in Bitcoin, short Bitcoin positions saw an inflow of $2.8 million. The increase in entries into short positions indicates that some investors expect a decline in Bitcoin’s price. This trend reveals that uncertainty about Bitcoin’s future price movements prevails. Ethereum, on the other hand, has taken its share of this negative atmosphere. Last week, there was an outflow of $29 million from Ethereum. While investors continue to lose interest in Ethereum, expectations for this asset have also remained weak. Despite Ethereum’s wider usage area and technological infrastructure, investor interest is not at the expected level in the current market conditions.
Investors who want to follow a broader investment strategy continue to turn to multi-asset investment products. There was an inflow of $29 million in multi-asset investment products last week. This means a positive flow for the 16th week in a row. These products, which have had a total inflow of $431 million since June, currently represent 10% of the assets under management. Multi-asset products offer the opportunity to invest in more than one crypto asset, allowing the risk on a single asset to be spread. This investment strategy is becoming increasingly popular among investors. It stands out as an attractive option, especially for investors who want to add different cryptocurrencies to their portfolios at the same time instead of a single asset. In cryptocurrencies such as LTC, XRP, Cardano, Solana, an inflow of just under $ 1 million is striking.
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