Bitcoin & Crypto Fund Flows Turn Negative, Continued Headwinds Likely

cryptonews.com:

Crypto fund flows turned negative last week, after strong inflows the week before, bringing total assets under management to their lowest since July 2021. In addition, both on-chain signals and the crypto derivatives market is painting a bleak picture for the near term.

According to data from the crypto investment and research firm CoinShares, crypto-backed investment funds lost a total of USD 141m in capital last week, a sharp reduction from the USD 274m that were added the week before.

The outflows last week mainly came from funds backed by bitcoin (BTC), which saw outflows of close to USD 154m. For other single-asset funds, changes were minor over the week, with ethereum (ETH) funds losing USD 0.3m, and solana (SOL) funds adding USD 0.5m.

The notable exception, however, were the so-called multi-asset funds, or funds that are backed by two or more cryptoassets. These funds saw inflows of USD 9.7m, with CoinShares suggesting investors see these funds as “safer relative to single line investment products during volatile periods.”

Explaining the moves in the market, analysts at Genesis Global Trading said in a note cited by Bloomberg that BTC is likely to stay in its current range between USD 29,000 and USD 31,000 “for the next couple of weeks.”

Others, however, said more downside volatility should be expected before the market once again moves higher.

“If the S&P falls some more, that should create one final flush and a great buying opportunity for bitcoin. There’s a lot of bearishness, and we should be approaching a time when you really want to buy into that in the next couple of months,” Fundstrat Global Advisors technical strategist Mark Newton was quoted as saying in the same report.

Meanwhile, crypto exchange Bybit and