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NEW YORK, June 21 (Reuters) – Bitcoin commodities and investment funds recorded their sixth straight week of cash outflows, according to data released Monday by digital asset manager CoinShares as a crackdown in China spooked Investors.
Bitcoin outflows totaled $ 89 million last week. For the year, bitcoin outflows reached $ 487 million, or 1.6% of assets under management, according to the data.
The crypto industry as a whole saw a third straight week of $ 79 million exits last week in what is now the longest period of exits since February 2018, CoinShares said. For the month of June, net outflows reached $ 210.5 million.
“Bitcoin’s six-week exit was driven by the combination of environmental concerns and an increasingly antagonistic regulatory environment in China,” said Matt Weller, global head of market research at Forex.com.
“With these themes still in place and prices moderate, it may be some time before you start to see another period of sustained inflow of funds,” he added.
Bitcoin hit a two-week low of $ 31,700 on Monday, undermined by China’s growing crackdown on bitcoin mining. Authorities in southwestern Sichuan province have ordered the closure of cryptocurrency mining projects in the main mining center. Read more
Bitcoin has lost over 20% in the past six days and is down by half from its April peak of nearly $ 65,000. Read more
Ether, the token used for the Ethereum blockchain, registered minor outflows of $ 1.9 million last week, after registering outflows of $ 14.6 million the week before. As a percentage of assets under management, ether outflows were only 0.14%, according to the data, implying that most of the negative sentiment was focused on bitcoin.
Weekly trading volumes in ether investment products have fallen dramatically, down 80% from the highs in May.
Blockchain data provider Glassnode said activity on the chain across the board is remarkably low on Bitcoin and Ethereum
Reporting by Gertrude Chavez-Dreyfuss; Editing by Cynthia Osterman
Our Standards: The Thomson Reuters Trust Principles.
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