People running away from Cryptocurrency? Outflow continued for the second week

Cryptocurrency investment products and funds saw net outflows for the second week in a row. This was stated in a report by digital asset manager CoinShares on Monday. This comes amid concerns of possible degradation due to regulation and the Russia-Ukraine conflict. The week ended March 18 saw a net outflow of $47 million as against $110 million in the previous week. Prior to the last two weeks, digital asset investment products saw inflows for seven consecutive weeks.

The outflow is being seen amid ongoing efforts to regulate crypto. The report shows that bitcoin saw its biggest outflow of $33 million this week, before it saw an outflow of $70 million. However, year-over-year inflows were positive, at $63 million. Bitcoin was down 0.5% on Monday at $41,047. Bitcoin has gained nearly 18% since its intra-day low on February 24 when Russia invaded Ukraine.

“Even though bitcoin bottomed out during the week after hitting $42,000, it still managed to close the week above $40,000,” said Mikel Morcha, executive director of digital asset hedge fund ARK36. “This type of retrace looks preferable after a significant increase over the past week and should not be viewed as a negative reaction to any particular geopolitical or macro news,” he added.

Ethereum-based products saw an outflow of $17 million last week, down from the previous week, which saw an outflow of $50 million. Analysts said Ethereum is plagued by negative investor sentiment. It has seen an outflow of $151 million year-on-year. Conversely, other altcoins such as Ripple, Polkadot and Solana have seen inflows over the past week.