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On May 2, European cryptocurrency investment firm CoinShares released its latest “Digital Asset Fund Flows Weekly Report” stating that the digital asset market has been bearish for the second week in a row, resulting in a total outflow of $72 million. The report notes that the bearish sentiment may be linked to the possibility of further interest rate hikes by the US Federal Reserve this week.
According to the report, crypto market funds experienced outflows across all regions and providers, especially in Germany and Canada, where outflows reached $40 million and $14 million, respectively.
Bitcoin (BTC) recorded the largest outflow of $46 million, with short bitcoin also experiencing a $7.8 million outflow, the highest since December 2022. in the amount of 119 million dollars. Meanwhile, Ether (ETH) product outflows totaled $19 million, the biggest weekly outflow since the September 2022 merger.
On a positive note, a small number of altcoin funds experienced minor capital inflows, with Solana (SOL), Algorand (ALGO), and Polygon (MATIC) receiving less than $1 million in capital flows.
Blockchain stocks also experienced negative sentiment, resulting in $2.5 million in outflows last week, although year-to-date net flows remain positive at $27 million.
CoinShares researcher James Butterfill wrote the report. He wrote: “Volumes of the broader cryptocurrency market remain low (50% less than the annual average), while volumes of ETP investment products [биржевые продукты] of $1.7 billion in a week, 16% above the annual average.”
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