The market has once again been hit by a wave of uncertainty. Many users have noticed that there is instability in the cryptocurrency market, which is largely due to bitcoin's constant fluctuations around the significant level of 60,000 dollars. In this regard, the analytical company CoinShares prepared a review of the past week, which turned out to be very ambiguous.
Bitcoin price cannot overcome the barrier
The Bitcoin Cash ETF market also ended trading with a negative result. However, before that, investors were given a reason for optimism for a while: the ETF showed positive dynamics for eight days in a row. Unfortunately, that growth was interrupted and net outflows began over the next four days, bringing the balance down to 480 million dollars, according to data from the Farside website.
CoinShares, a company specialising in cryptocurrency market analytics, described the past week as negative. Macroeconomic factors put pressure on the market, slowing the sentiment of participants. As a result, outflows from crypto investment products reached 305 million dollars. The CoinShares report also noted that the negative sentiment was recorded among different providers and in different regions, emphasising the scale of the changes taking place in the market.
Bitcoin is back in the lead
According to the analytical company CoinShares, the main reason for the current trends was unfavourable macroeconomic data. Bitcoin was again in the spotlight, recording an outflow of funds worth 316 million dollars, most of which came from the United States. In contrast, BlackRock's iShares fund iShares saw inflows of 219 million dollars over the same period.
CoinShares explains the situation in its weekly cryptocurrency market flows report as follows: ‘We believe this dynamic was driven by stronger than expected economic data in the US, which reduced the likelihood of an interest rate cut by 50 basis points. As such, we continue to believe that this asset class will become increasingly sensitive to interest rate expectations as the Fed approaches a key juncture.’
In the end, only bitcoin and Ethereum turned negative, while Solana and multi-asset funds managed to hold a positive balance, with results of 7.6 million dollars and 6.4 million dollars respectively. It is also worth noting that short BTC futures contracts recorded inflows for the second week in a row, reaching 4.4 million dollars, the highest since March last year.
Bitcoin continues to be volatile without giving the cryptocurrency market a clear direction. At the same time, its dominant share at 57.42% is holding back opportunities for the start of the ‘alt season’. Perhaps autumn will be a more favourable period for this cryptocurrency?
Met Sorrows
Met Sorrows is a politician and environmental activist. Met has been involved in politics for 15 years and an environmental activist for 5 years.