investment products experienced outflows of $32 million for the week ending on May 19. This marks the fifth consecutive week of outflows, bringing the total outflows over the past five weeks to $232 million, equivalent to 0.7% of total assets under management.
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The decline in trading volumes, which reached $900 million for the week, reflects a decrease of approximately 40% compared to the 2023 average.
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This decline coincides with the overall decrease in cryptocurrency prices and concerns about sell-offs.
Bitcoin faced negative sentiment, with outflows of $33 million. Short-Bitcoin product
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.experienced minor outflows of $1.3 million, contributing to a total outflow of $235 million over the past five weeks for short BTC investment products.
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Institutional investors showed a lack of confidence in digital assets, particularly in the Bitcoin price, leading to a significant decrease in its value to $27,307
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another week of outflows from digital asset investment products.
During the five-week period from April 21 to May 19, the price of Bitcoin declined by approximately 4.8% to reach $26,842. At the time of writing,
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Bitcoin's price stands at $27,257.
Despite the negative sentiment, Litecoin and Avalanche managed to attract inflows into their investment products, deviating from the broader trend in the market. Litecoin received
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inflows of $0.7 million, while Avalanche saw inflows of $0.3 million. Ethereum, on the other hand, faced outflows of $1 million.
The report also highlighted a decline in Bitcoin miners' reserves, indicating that
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miners are selling their holdings and exerting selling pressure on the market. This coincided with a decrease in Bitcoin mining profitability, with 52.3% of trading days being unprofitable for the average miner.
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.the expiration of a large number of Bitcoin options could lead to further selling pressure. BTC prices have already declined 2.3% from their intra-week high of $27,500.