Investors Dumped a Record Amount of Bitcoin Last Week, Only to Miss Out on a Face Ripping Rally

cryptonews.com:

Digital asset investment products saw their highest-ever weekly outflow last week, according to the latest Digital Asset Fund Flows Weekly Report released by CoinShares. The $255 million in net outflows amounted to 1.0% of total assets under management (AuM) fleeing from the space.

Expressed in percentage terms of AuM, last week’s outflow represented the second largest exodus of capital from crypto after AuM dropped by 1.9% in one week back in May 2019. Back then, however, this amounted to just $52 million in outflows from digital asset investment products.

Bitcoin dominated outflows, with $243.5 million leaving long-Bitcoin investment products, while $1.2 million left short-products. Ethereum saw weekly outflows of $11 million. Altcoin net flows were close to neutral – Litecoin and Tron lost $0.3 million in capital, while Solana, XRP and Polygon gained $0.4, $0.3 and $0.1 million respectively. Other altcoins lost a new $1.5 million.  

Last week’s outflows from crypto products wiped out net inflows for the year. Net flows now stand at -$82 million since the start of January.

Investors probably dumped their digital asset investments at such a rate last week due to concerns about a series of high-profile crypto-linked US bank failures, including Silvergate and SVB Financial. The failures of these banks triggered fears amongst investors of weakening fiat-to-crypto on-ramps and also about the collateralization of Circle’s USDC stablecoin, which had some reserves parked at these institutions.

Bitcoin at one-point last Friday had fallen all the way back to test its 200-Day Moving Average and Realized Price in the upper $19,000s. Investors were also likely fretting about the ongoing hawkish message from the Fed on the need for