Crypto craters as top crypto investment vehicles from BlackRock, Fidelity & others saw record-high outflows.
Immense profit-taking on the United States stock market has carried on to the general crypto markets over the past few weeks, with traditional market-compatible crypto products seeing outflows unprecedented in half a year.
Latest CoinShares research hints at exchange-traded product (ETP) outflows scorching past $2 billion, with Bitcoin (BTC), Ether (ETH) & Ripple (XRP) related products hit the hardest. Country-wise, Germany has notably bucked this trend by adding $13 million in a week.
XRP, ETH & BTC Mix Defies Broader Bearish Trend
Switzerland, Sweden, Canada & Hong Kong have all contributed tens of millions to the sell-off trend across the globe. For the most part, it’s the American investors who had participated in last week’s humongous sell-off, accounting for $1.975 billion out of roughly $2 billion. As investor sentiment shifts towards risk-off assets, digital assets take the plunge.
Certainly, Bitcoin (BTC) & multiple other speculative assets like the major-cap altcoins, top tech indexes & stocks have tumbled drastically over the past few weeks. However, the multi-asset crypto basket ETPs, including a mix of cryptos with XRP, BTC & ETH, inked $31 million inflows despite the all-around market earthquake.
Altcoins Wiped Out, BTC’s Moves Set The Rules
While this is a great sign in the long run, Glassnode’s stats reveal an unfavorable divergence for altcoins. The TOP 500 altcoins vs. BTC Supply In Profit diagram shows a clear wash-out for the altcoins that are already trading in the ‘capitulation zone’ with just 5% of assets in profit, marking an unprecedented case in crypto’s history.
For some seasoned crypto traders this would serve a buy-in opportunity, but the altcoin market losing dominance against Bitcoin (BTC) raises further questions. Pushing overall dominance above 58%, BTC’s $1.37 billion in ETP outflows last week dictated a broader trend, but when BTC’s price swings high, not all major-caps tend to catch on, creating this long-term divergence.
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