According to the money flows data, outflows of $7.2 million were observed in the previous week. As a result, negative flows continued for the third week in a row, totaling $219 million for the previous three weeks.
Previously, the same data for the weeks ending April 15 and April 8 had shown outflows of $97 million and $134 million, respectively, while allowing for some late trades.
Altcoin interest is on the rise.
Despite negative market sentiment, year-to-date flows are positive at $389 million, according to the study. In addition, Bitcoin interest was practically positive last week, with inflows totaling $2.6 million.
However, Ethereum failed to impress for the third week in a row, with $16.9 million in outflows. The second generation token’s year-to-date flows are likewise negative at $169 million.
On the other hand, cryptocurrencies like Avalanche, Solana, Terra, and Algorand, which are strong competitors to ETH, saw huge inflows of $1.8 million, $0.8 million, $0.7 million, and $0.2 million, respectively.
Broader emotions are still unfavorable.
The profit-taking comes at a time when the whole cryptocurrency market capitalization is still under $2 trillion, with Bitcoin failing to stay over $40,000. The Bitcoin Worry and Greed Index’s volatility and velocity on April 25 demonstrated tremendous fear in the market.
As a result, technical experts predict even more negative consequences.
“As it becomes more valuable to hold dollars, some investors may”
“reallocate from Bitcoin or gold to the dollar,”
That’s, according to Bloomberg, citing comments from the technology and financial services business NYDIG.
Fundamental elements, however, are expected to underpin and promote Bitcoin’s growth, according to the experts.
“We have only witnessed this amount of outflow from exchanges four other times since the start of 2018,”
So, Blockforce Capital analysts told Bloomberg.
“Three of the occurrences coincided with a big price increase not long after.”
In general, blockchain stocks have held up well over the last three weeks. Despite the possibility of rising interest rates depressing attitudes, they experienced an inflow of roughly $3 million last week, according to CoinShares.
Project launches, on the other hand, may have taken a knock in the first quarter of 2022.
“The total number of investment product launches has cooled,”
So, according to the research, “with only 11 in Q1 2022 vs 24 in Q4 2021.”