Crypto
Record 9 Straight Weeks of Crypto Investment Products Outflows Pose Concern for the Industry
Record 9 Straight Weeks of Crypto Investment Products Outflows Pose Concern for the Industry
According to data published by CoinShares on Friday, investment products in the crypto market have witnessed the ninth consecutive week of outflows. This is the longest run of withdrawals ever seen since CoinShares started keeping track of these trends. This trend has led some experts to warn of a potential change of atmosphere for cryptocurrencies.
The Figures Involved
The report reveals that funds that track cryptocurrencies such as Bitcoin and Ethereum experienced outflows of a value of $44 million last week. Apparently, this has brought the total outflows from such funds to around $670 million since mid-May. Amid this period, the prices of major cryptocurrencies like Bitcoin and Ethereum have tumbled, which in turn has likely led investors to sell their holdings. Specifically, as of Friday, Bitcoin’s price was down by about 47% since its record high in April, and Ether was down by 56%
Crypto Market Uncertainty a Key Factor
According to CoinShares Chief Strategy Officer Meltem Demirors, the crypto market crash has not aided investor confidence in the sector. The crash has led to many investors being apprehensive about what to expect from the market and, as a result, have chosen to cut their losses and sell. Demirors said “We’re seeing a bit of uncertainty and a lack of direction, which is keeping investors sidelined. But looking at the broader landscape, we’re still in a bull market. These things happen; cycles are natural, and we’ll continue to see them.”
Negative Sentiments Driving Investors Away
While the current trend may only be temporary, the market sentiment must be positive to attract investors back to the market. Unfortunately, the prevailing negative attitudes towards the digital currency industry may make it hard to entice investors back in. Despite various countries, including El Salvador and Panama, embracing cryptocurrencies, the sector keeps facing scrutiny and regulations in other countries. For instance, a resolution proposing new regulations was introduced to the United States Congress last week.
Mutual Funds Imperiled by Market Crisis
The report indicates that mutual funds that invest in cryptocurrencies lost 6%, reaching the lowest point since the start of the year. The primary concern regarding mutual funds is their dependence on institutional investors. If institutional investors decide to withdraw their investment, the resulting erosion of asset value could force the mutual fund to stop trading.
BNB price has noted significant gains over the past few days, surging past the psychological resistance of $300. The native cryptocurrency of the Binance Exchange has surpassed Solana to regain its position as the fourth-largest cryptocurrency by market cap. The digital currency has been rallying lately with a 7-day profit of more than 15%. Additionally, BNB has clocked a phenomenal gain of 38% in the month to date.
Binance Coin Outlook
BNB price has been on a strong bull run for the past week, breaking out of its consolidation. Even so, the asset has experienced a correction in its uptrend over the past 24 hours but remains above the crucial level of $300. BNB’s total market cap has decreased by 4% over the past day to $48 billion, while the total volume of the asset traded over the same period dipped by about 15%.
Over the past year, Binance Coin has had to cope with Fear, Uncertainty, and Doubt (FUD) on the back of the regulatory troubles of its underlying exchange. Earlier, the BNB price touched a low of $223.50, a few days after its former CEO, Changpeng Zhao, pleaded guilty to money laundering charges. However, the cryptocurrency has managed to rebound 46% in value since then.
The recent price rally has been associated with various positive developments in the Binance ecosystem, including the Introduction of the Isolated Margin Auto-Transfer Mode. This feature enables…
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
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