The market of digital currencies is full of uncertainty. The ups and downs are quite natural for this market. The situation of any such coins can change within a short period. A single week is enough to change the complete scenario of the Crypto market.
According to a report of 7 June, the bitcoin mining trends, digital currencies, and other similar assets are facing huge inflows. This inflow was happening despite the presence of bearish trends. The total amount of such inflows is around 100 million USD. This resulted in the gathering of 39.8 million USD worth of AuM. But, this inflow is not long-lasting.
Heavy Bleeding In The Cryptocurrency Market
The market of Cryptocurrency is undergoing a heavy downfall phase. Though it is a common nature of this market, the recent fall is severe. Due to this undergoing a large correction phase, the market is quitting the address of being in the “Trillion” house.
- While facing a recent study, the total market was standing at 959.7 Billion USD.
- The market is in this position after suffering a correction of 14% within 24 hours.
- The experts are expecting a major outflow from the market.
- In this matter, the market experienced an outflow of around 102 Million USD. This is a recent report prepared by CoinShare.
- In view of the existing negative reviews and news about Cryptocurrency, the blog made some statements.
- In these outflows, the majority of them are from America, which makes a total of 98 Million USD.
- Europe accounts for 2 Million USD in this outflow.
Will This Downfall Continue?
According to some experts, this outflow is not going to stop soon. Once the market is moving toward a downward trend, then it will take a long time for it to stop and recover.
A few weeks back, the total amount of outflow from Bitcoin was 57 Million USD. This brings the total outflows on a month-to-date basis to 91 Million USD. The more interesting aspect is that, along with the major outflows, the investments on short Bitcoin are also making a total of 0.2 Million USD.
Also, the total assets under management are standing at a much lower amount, which is 55 Million USD. While, for the long-Bitcoin investment options, it is standing at 27 Million USD.
There is an important aspect that is leading to the depletion of Bitcoin. According to CoinShare’s blog, the major cause behind the presence of Bitcoin in the winter phase over the last 6 months can be a direct outcome of high hawkish rhetoric which is coming from the Federal Reserve of the United States. Also, the Fiasco of Terra is another reason for such outcomes.
Altcoins Facing Similar Results
Apart from Bitcoin and other digital currencies, Altcoins are going through a similar phase. The prime Altcoin, Ethereum is also facing major outflows.
- In recent weeks, the total amount of outflow for Ethereum was 41 Million USD.
- This brings down the entire year-to-date outflow to 387 Million USD, which is around 4.4% of the total AuM.
- Ethereum has been facing such situations in the past years.
- This can be the cause of the fall of this coin’s AuM to 8.7 Billion USD at present.
- But, in comparison to other coins, Solana is recording a small rise which is around 400,000 USD.
- Other coins like Cardano, Litecoin, and XRP are each facing an inflow worth 200,000 USD.
- Despite these inflows, the fate of Altcoins is not going to change much.
- The blog states that apart from the investments in multi-asset products, investors are steering clear in adding the Altcoins to the positions.
Conclusion
Facing highs and lows is a common feature of the Cryptocurrency market. The market is full of uncertainty and volatile situations. Amidst all such factors, the investors need to understand the strategy properly and make a proper plan before making heavy investments.
Also, it seems that the Cryptocurrency market will take a long time to recover from these outflows. It needs strength and time to recover from these hurdles and outflows. Despite the time it needs, the present condition of the Cryptocurrency market is very sensible. It is facing losses and going in a downward position without any stop. It will take a long period to recover from such a loss.
