Bitcoin Falls Out of Favor After Losing Grip on $22K, Fund Flows Report Shows

cryptonews.com:

After dominating crypto inflows for most of the year so far, Bitcoin fell out of favor in the eyes of investors last week. That’s according to the latest weekly Digital Asset Fund Flows report produced by crypto analytics firm CoinShares, which tracks investment flows into and out of digital asset investment products. Bitcoin fell back under $22,000 last week for the first time since mid-January last Thursday, and ultimately dropped 5.0% last week.

According to CoinShares, Bitcoin investment products saw a net outflow last week of $10.9 million, while altcoin investment products saw a net inflow of $3.9 million. It is worth noting that short-Bitcoin products saw an outflow of $3.5 million, with some investors seemingly taking advantage of the recent pullback to take profits or cut losses on short positions in wake of 2023’s rally.

Ethereum finally started seeing some love. The world’s second-largest cryptocurrency by market capitalization and dominant Decentralized Finance/Application blockchain infrastructure provider saw inflows of $5.1 million, taking its year-to-date inflow to $15 million. That still lags Bitcoin by a long way, which has seen related investment products receive inflows of $183 million.

CoinShares put the net outflow of $7 million in digital asset investment products down to investors getting “spooked by the prospect of additional rate hikes by the US Federal Reserve” in wake of “a week of macro data that significantly beat expectations to the upside”. The week before last, US jobs and ISM services PMI survey data for January both surprised massively to the upside, signaling that the US economy still remains fairly hot and boosting confidence at the Fed that they can press ahead with rate hikes without