Crypto Market Records First Weekly Outflow in Seven Weeks, Bitcoin Faces $942 Million Exodus

In a notable shift, the broader digital currency ecosystem has witnessed its first weekly outflow in seven weeks, amounting to over $942 million withdrawn from the market. CoinShares' report attributes this significant outflow to the Grayscale Bitcoin Trust (GBTC), sparking a downtrend.

Institutional Crypto Investment Trends: Insights from Inflow-Outflow Dynamics and ETF Activity

The crypto inflow-outflow chart reveals an intriguing narrative, with the $942 million outflow following the largest inflow since the beginning of the year. Over the past seven weeks, institutional investors have contributed a total of $12.3 billion into crypto investment products. Despite new Bitcoin ETF issuers attracting $1.1 billion in the past week, Grayscale recorded outflows totaling $2 billion, leading to the largest outflow for Bitcoin at $904 million. Bitcoin's month-to-date (MTD) inflow stands at $4.517 billion, with a year-to-date (YTD) figure of $11.964 billion.

Ethereum Outflows Persist Amidst SEC ETF Approval Uncertainty

While the United States Securities and Exchange Commission (SEC) has yet to approve a spot Ethereum ETF, ETH experienced a slight outflow of $34.2 million for the past week. The YTD figure for Ethereum stands at $87 million, with a month-to-date (MTD) loss of $46.4 million.

Crypto Market Tensions Emerge as Outflows Signal Potential Correction

The outflow signals a tense atmosphere in the crypto market and underscores the need for a significant correction. This was accompanied by a slowdown in Bitcoin's price, dropping from the all-time high (ATH) of $73,750.07 to a low of $60,940 in the past 11 days. At present, Bitcoin is priced at $67,126.98, reflecting a 2.38% increase in the last 24 hours. The uptick observed in the ETF market on Monday may revive accumulation trends, potentially boosting bullish sentiment as March draws to a close.