$621M Bitcoin Exodus Underpins Performance Woes

Major outflows totaling millions from Bitcoin led the funds’ exodus recorded across crypto assets.

A sad Bitcoin sitting on the edge of a 3D wireframe chart staring down to earth underneath.
Created by Gabor Kovacs from DailyCoin
  • Bitcoin recorded a significant amount in outflows in the past week.
  • The crypto market is experiencing a border downturn.
  • Market analysts are weighing in on the impact of the current market trend on the expected bull run.

The past weeks in the crypto market have been red-marked, evident in the deep price declines recorded among most assets. From major market giants to memecoins, barely any asset has been left unscathed, with a weeks-long bloodbath impacting every asset in its path.

As the largest crypto asset, Bitcoin’s losses have been particularly severe, leading to significant outflows for the crypto king.

BTC Records Highest Outflow in Three Months

According to CoinShares’ Digital Asset Fund Flows weekly report, which was released on Monday, June 17, 2024, Bitcoin (BTC) recorded a staggering $621 million in outflows last week.

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The crypto market giant’s poor performance dominated the unimpressive trend recorded across digital asset investment products. Major outflows totaled $600 million, the largest since March 22, 2024.

Coin Shares added that the outlaws, likely driven by efforts by investors to scale back their exposure to fixed-supply assets, were concentrated in the United States, which led the charge with outflows totaling $565 million. Other regions, including Switzerland, Canada, and Sweden, contributed to the negative sentiment, recording $24 million, $15 million, and $15 million, respectively.

The underperformance also rippled through trading volumes, which have maintained a low momentum at $11 billion, a significant 50% decrease compared to the US$22 billion weekly average this year. The prevailing negative sentiment across the market has raised concerns about whether the current performance signals the end of the anticipated bull run.

Do Hopes Remain for the Bull Run? 

Weighing in on BTC’s underperformance in recent weeks, market analyst Rekt Capital emphasized that the market giant’s ongoing struggle is beneficial for the overall cycle.

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The analysis hinges on parallels drawn to previous post-halving cycles, in which Rekt Capital asserted that Bitcoin has never broken out this early in the post-halving period. The analysis added that if such a breakout occurred, the cycle could accelerate to the extent that the bull market might be shorter than usual, asserting that the continued consolidation is necessary for a “normal, usual bull run.”

Rekt Capital added that Bitcoin is accelerating in this cycle by approximately 170 days, and the longer it maintains its consolidation, the better it will be for resynchronizing this current cycle with the traditional Halving cycle

On the Flipside

  • At press time, BTC is trading at $65,259, down nearly 14% from its all-time high value of $75,830.
  • Despite BTC’s misfortune amid the border negative market trend, some assets managed to buck the trend.
  • The broader underperformance witnessed over the past weekend resulted in the loss of over $40 billion for the crypto market.

Why This Matters

The significant outflows recorded for BTC and broader crypto funds underscore the bearish sentiment among investors across the market. The crypto king’s ability to chart a better course could promise a promising future for the ecosystem. 

Discover more about the impressive inflows recorded in previous weeks in the market:
Crypto Funds Rake in $2B as Rate Cut Hopes Fuel Positive Streak

The anticipation for Ethereum ETF in early July is mounting, read more here:
Ethereum ETFs Teased for July 2nd Launch: Here’s What We Know 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.