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NEW YORK: Bitcoin funds and commodities posted record outflows last week as investors continued to cautiously monitor the world’s largest cryptocurrency, which has seen its bullish momentum slow in recent months, data shows of digital currency manager CoinShares released on Monday.
Bitcoin’s outflows reached $ 141 million in the week ending June 4, representing 8.3% of the net inflows seen this year. For the year so far, bitcoin has consistently recorded net inflows of $ 4.2 billion.
The cryptocurrency sector globally saw outflows of $ 94.2 million last week, according to the data. James Butterfill, an investment strategist at CoinShares, believes that despite last week’s cash outflows, there appears to be an early return of sentiment since May, where most commodity providers were seeing clear outflows and sentiment was overall negative.
Bitcoin was last down 0.6% at $ 35,591. For the month of May, bitcoin fell 35.4%. So far in June, bitcoin was down a modest 4.8%.
That said, ether, the token used for the Ethereum blockchain, continued to see entries, with $ 33 million this week. So far this year, entries into ether products and funds have totaled $ 1 billion.
XRP posted total inflows of $ 7 million, the largest since April, while Cardano and multi-asset products registered inflows of $ 4.5 million and $ 2.7 million respectively.
The weekly bitcoin digital asset product trading volume has fallen 62% from last month, according to data from CoinShares.
Blockchain data provider Glassnode has also claimed the bitcoin slowdown.
On-chain demand growth has slowed considerably, with a number of on-chain measures showing significant setbacks, Glassnode said.
During the recent sell-off, the bitcoin network saw a reduction in active addresses, down 18% from recent highs of around 940,000, Glassnode said. This decline, however, is roughly half of the reduction seen in 2017, suggesting that while activity has slowed, demand is higher than after the macro peak of previous cycles.
Data also showed Grayscale remains the largest digital currency manager at $ 30.3 billion, but that was down from $ 33.6 billion the week before.
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