Digital asset fund outflows take over the crypto market

A key reason for the stagnant movements in the crypto market since the last few days has been the digital asset fund outflows, which have picked up pace.

Bitcoin has been in a very tight range since the start of this week. Hovering around $65,000, it momentarily dipped below the mark, only to recover sharply soon. This hints at a positive scenario in the crypto market, with Bitcoin’s trajectory at least holding strength around its support. On the other hand, digital asset fund outflows have increased, which could be a reason for the recent bearish moves.

A leading digital asset manager pointed to this factor in its weekly crypto analysis report. The report noted how most of the outflows were from Bitcoin-based funds. According to its analysis, the FOMC meeting in the US was responsible for Bitcoin’s trajectory currently.

It said, “Digital asset investment products experienced outflows totaling US$600 million, the largest since March 22, 2024, likely due to a more hawkish-than-expected FOMC meeting, 

prompting investors to scale back their exposure to fixed-supply assets.”

However, it noted how altcoins funds had attracted inflows at the same time. These altcoins included ETH, XRP, and LIDO. Its outcome emerged in the crypto market, as most altcoins did not go through much losses over the last week.

Long-term investors are holding off on selling pressures in the market, leading to a fixed trading range for most tokens.

BTC/USD 1D price chart

Bitcoin is currently trading at around $65,500 on June 18, 2024, with BTC/USD trading lower by a margin of 0.48% in the last 24 hours. Bitcoin’s market cap was trading at around $1.29 trillion in the last 24 hours.

BTC/USD is trading lower than its 20-day EMA (68,371.05), as BTC’s 24-hour volume was at around $35.2 billion. The global crypto market cap decreased by around 1.14%, trading above $2.36 trillion. BTC’s year-to-date returns are at 56.28%.

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