Bitcoin rises back above $50,000

Bitcoin hit with record weekly outflow as rally ebbs -CoinShares data

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New York: Digital currency management company CoinShares released data on Monday showing that as the hot rally of digital assets hits barriers, Bitcoin has issued a record weekly outflow of funds, and the overall sentiment towards cryptocurrencies has turned cautious.

Outflows for bitcoin hit $21 million for the week of April 23, the largest weekly outflow on record. Total weekly inflows for the sector were just $1.3 million, the lowest weekly figure since October 2020.

That said, CoinShares said outflows last week were 0.05% of the crypto sector’s assets under management, while weekly inflows this year averaged 0.6%.

Total assets under management were $54.3 billion as of last week, down from $64.2 billion in mid-April.

“We saw investors shifting funds away from bitcoin amid some idiosyncratic developments last week, prominently including the temporary power outage in mining mecca Xinjiang,” said Matt Weller, Global Head of Market Research at Forex.com and City Index.

During serious coal mine accidents in China’s Xinjiang, Shanxi, and Guizhou provinces, the Chinese government instructed local coal power plants to conduct safety inspections. According to media reports, the Xinjiang data center, including the Bitcoin mining farm, had to be closed due to the subsequent power outage.

After hitting an all-time high of nearly $65,000 in mid-April, Bitcoin has fallen nearly 25%. However, on Monday, the world’s largest cryptocurrency by market capitalization rose by 10%, and the latest transaction price was $54,031, highlighting the extreme volatility of the asset.

The second largest cryptocurrency ethereum, meanwhile, showed strong inflows of $34 million. So far this year, inflows were $792 million, or 8% of total AUM, reflecting renewed positive sentiment among investors.

“Cryptoasset investors continued to accumulate ethereum as the highly-anticipated July launch of EIP-1559, which will cut the new supply of ETH dramatically, approaches,” said Forex.com’s Weller, referring to the blockchain’s planned upgrade.

Grayscale is still the largest digital currency manager, with total assets of 41 billion U.S. dollars as of April 23, down from last week’s 49.5 billion U.S. dollars. The assets under management of CoinShares, Europe’s second and largest digital asset management company, are approximately US$5.2 billion, slightly lower than the US$5.7 billion as of mid-April.

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