The digital asset investment products market has seen a decline in investor interest for the second consecutive week, with outflows totaling $206 million, according to a report from CoinShares. Bitcoin investment products specifically witnessed outflows of $192 million, while Ethereum faced outflows of $34 million for the sixth consecutive week. Despite this, there was a slight increase in sentiment towards multi-asset products, with inflows of $9 million. Litecoin and Chainlink also saw inflows of $3.2 million and $1.7 million, respectively. On the other hand, concerns over the impact of halving continued to weigh on investor sentiment in the blockchain equities market, leading to outflows of $9 million.
Trading volumes in Exchange Traded Products (ETPs) have also seen a slight dip, reaching $18 billion, with ETPs accounting for a smaller percentage of total bitcoin volumes (28%). This decrease in trading volumes may be attributed to expectations of prolonged high interest rates by the Federal Reserve (FED), resulting in a diminishing appetite among ETP/ETF investors. The negative sentiment surrounding digital asset investment products was particularly observed in US ETFs, which experienced outflows of $244 million. Newly issued ETFs continued to receive inflows, albeit at lower levels compared to previous weeks. In contrast, Canada and Switzerland saw inflows of $30 million and $8 million, respectively, while Germany experienced minor outflows of $8 million.
While some analysts have cautioned about a potential further price slide following the recent halving event, Bitcoin has since registered gains and is currently trading at $66,266, up by almost 2% over the past day. Despite short-term fluctuations, the overall consensus remains bullish in the long term. Bitwise has noted that historically, the month immediately following the halving event sees a modest drop in price, followed by exponential gains in the subsequent year. Following the 2012 halving, Bitcoin surged by 8,839% over the following year. Similar patterns were observed after the 2016 and 2020 halvings, indicating a positive long-term outlook for Bitcoin.
The outflows in digital asset investment products were primarily concentrated in US ETFs, with outflows amounting to $244 million. However, new ETFs continued to receive inflows, albeit at lower levels compared to previous weeks. Canada and Switzerland experienced inflows of $30 million and $8 million, respectively, while Germany saw minor outflows of $8 million. Ethereum faced outflows of $34 million for the sixth consecutive week, while multi-asset products saw improved sentiment with inflows of $9 million. In the blockchain equities market, concerns over the impact of halving continued to impact investor sentiment, leading to outflows of $9 million.
Despite initial concerns over the impact of the recent halving event on Bitcoin’s price, the cryptocurrency has since registered gains and is currently trading at $66,266, up by almost 2% over the past day. While some analysts have warned of a potential further price slide, the overall consensus remains bullish in the long term. Historical data suggests that following previous halving events, Bitcoin has experienced significant price surges in the subsequent years, indicating a positive outlook for the leading cryptocurrency. Crypto.com CEO Kris Marszalek has also expressed optimism about Bitcoin’s long-term prospects, stating that while there may be selling pressure in the short term, the overall trajectory remains positive.
