According to an analysis by market researchers CoinShares, the exchange-traded Bitcoin-ETF in the US and other crypto assets worldwide have seen a decrease in inflows, totaling 1.2 billion US dollars (1.12 billion euros) in the past two weeks. This outflow has caused a downward trend, particularly in Bitcoin, as the market is feeling pessimistic about potential interest rate cuts by the US Federal Reserve this year.
Despite this negative sentiment, researchers at CoinShares do not anticipate a sustained slump in the medium and long term. Additionally, investors have not increased their short positions on Bitcoin, indicating a lack of significant bets on a decreasing price. The recent outflows have primarily focused on Bitcoin, with investors withdrawing a total of $630 million in the past two weeks.
The second most important cryptocurrency, Ether on the Ethereum blockchain, has also experienced negative sentiment and recorded outflows of $58 million. This data reflects the current state of the crypto market amid uncertainties surrounding interest rates and monetary policy decisions. Despite this uncertainty, many investors saw a price drop to just under $59,700 as an opportunity to enter the crypto market at a relatively low price. As a result, the Bitcoin price briefly rose above $62,000 before falling back down again.
