Last week, investors actively withdrew their assets from Bitcoin funds.
Most likely, the panic in the market is associated with the current policy of the U.S. Federal Reserve and the fear of raising interest rates.
According to the latest digital asset report from Coinshares, outflows from Bitcoin products are at their highest since June 2021. Total outflows from digital asset funds for the week ended April 29 were $120.1 million, with a large bitcoin outflow slightly offset by an unexpected $38 million in inflows for token FTX ( FTT) products. Bitcoin outflows last week were $132.7 million and $310.8 million for all of April.
Coinshares does not see a clear reason for such a strong outflow but believes that the bearish sentiment is influenced by the U.S. Federal Reserve policy.
“It is difficult to ascertain the precise reason for this other than the hawkish rhetoric from the US Federal Reserve and the recent price decline.” says the report
Bitcoin’s closest competitor for fi
