The cryptocurrency market has witnessed a massive sell-off this week. Over $3.15 billion in the value passed in or out of exchanges, with a net bias towards inflows, which accounted for $1.60 billion (50.8%). In fact, this recorded the largest aggregate exchange-related volume peak since October last year.
As cryptocurrencies continue to lose ground, blockchain analysts at CoinShares spotted an interesting mix of investors’ activity. James Butterfill, on 9 May published the Volume 79: Digital Asset Fund Flows weekly report that covered these attributes. Digital asset investment products surprisingly saw inflows totaling US$40m last week.
Source: CoinShares
Investors took advantage of the substantive price weakness to add to positions. Or rather ‘buying the dip’. This was a sign that investors were taking advantage of the market to get into exchange-traded Bitcoin products at reduced rates. Exchange-traded crypto products, such as Grayscale Bitcoin Trust (GBTC), sharesfell by 19% over the past five days compared to BTC’s 25% drop.
James Butterfill, head of research at CoinShares asserted,
“Interestingly, we have not seen the same spike in investment product trading activity as we typically see historically during extreme price weakness periods. It is too early to tell if this marks the end of the four-week run of negative sentiment.”
One needs rather wait and watch as the crypto drama unfolds. Investors are panic-stricken, but, the question remains- What is the way forward?
BTC, the largest coin suffered a massive 1.47% correction in 24 hours as it traded around the $31k mark. But holders still had faith in the king coin.
Source: CoinShares
Bitcoin saw inflows totaling US$45m. Although, some investors toom profits as well. Bitcoin
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