Digital asset investment funds saw four weeks of consecutive outflows.
According to a weekly report from CoinShares, outflows from crypto investment products totaled $54 million on the week ending May 14. Bitcoin-related funds alone saw $38 million worth of outflows over this period.
The total amount of outflows over the week now stands at $200 million, suggesting investor sentiment towards the industry has turned increasingly negative.
“The outflows were broad from a regional perspective, suggesting negative sentiment is not concentrated on just a few investors,” said CoinShares.
The lack of investor confidence comes after Bitcoin failed to attract support above the $30,000 price level, falling 10% in the last month. At the time of writing, the leading digital asset was trading at around $27,200.
Still, despite the uninspiring price action, other on-chain metrics would suggest interest in Bitcoin has only been growing. Data from Glassnode on May 13 shows the number of “wholecoiner” addresses that hold an entire Bitcoin has crossed 1 million.
— Fred Thiel (@fgthiel) May 15, 2023
Glassnode co-founder Negentropic told his Twitter followers that the market is pricing in the Federal Reserve not cutting interest rates in June – something that will be optimal for a potential run to $35,000 in the summer. While he believes that this price level is still optimal once external pressures subside, he noted that a drop to $25,800 is a possibility based on the current signals from the options market.