Bitcoin and other cryptocurrencies have been facing another week of outflows, leading to a decline in prices.
Bitcoin Correction
CoinShares reports that Bitcoin investment products have seen $630 million in outflows, suggesting a growing pessimism among investors due to expected interest rate hikes. This indicates a “true correction” may be underway for Bitcoin.
However, short Bitcoin products have also seen outflows of $1.2 million, indicating that most investors still believe in Bitcoin’s long-term potential.
Geographical Outflows
The US has experienced the largest outflows, primarily from Spot Bitcoin ETFs. Canada, Germany, and Hong Kong have also seen significant outflows.
Altcoin Inflows
Despite price declines, some altcoin products have seen inflows, including multi-asset products, Solana, Litecoin, and Polygon.
Future Price Movements
The coming week will be critical in determining the extent of the correction. Recent volatility suggests the correction may be nearing its end, as Bitcoin and other cryptocurrencies have rebounded in the past 24 hours. Sustained upward movement could lead to increased inflows into crypto investment products.
