February 22, 2024

Bitcoin funds experience biggest weekly outflow since summer 2021

Investors withdrew over $130 million from the cryptocurrency, the last time this happened during a bearish trend, when Teslarefused to pay in bitcoins, and China banned mining.

Assets were withdrawn from bitcoin funds last weekby $133 million, which was the largest weekly outflow since June 2021. Since the beginning of April, $310.8 million has been withdrawn from the funds of the first cryptocurrency, Cointelegraph writes, citing a new CoinShares report.

The last time BTC funds experienced the sameweekly outflow, the market was in a bearish trend. Then Tesla stopped accepting cryptocurrency for payment due to environmental problems of mining, and China introduced a ban on the mining of digital assets.

CoinShares noted that it is now difficult to assess the reason for the current outflow. The company believes that the “hawkish” rhetoric of the US Federal Reserve and the recent decline in prices in the crypto market could have influenced this.

Over the past month, the price of bitcoin has decreased by almost 18%, to around $38.4 thousand. The market capitalization of the cryptocurrency is $730 billion with daily trading volumes of $23.8 billion.