Investor indifference follows Bitcoin’s break above $20,000

Bitcoin has seen a weak performance over the past couple of weeks, and crypto investors have responded to this. After a couple of weeks of tethering above $20,000, the digital asset’s price had finally fallen below this key technical point, triggering outflows in the market. In the past week, institutional investors have continued to feel the fatigue in the market, so although there were outflows, they are still quite muted.

Bitcoin loses $29 million

Bitcoin outflows have continued into another week. This has now brought outflows for the digital asset into three consecutive weeks with no sign of reversal. The total came to $29 million in payouts for the week. It marked another week where bitcoin had posted the majority of outflows, although others had recorded outflows.

The inflows were more localized to short bitcoin, which once again speaks to the bearish sentiment brewing among bitcoin investors. Despite not being huge with previous margins, the $1 million in short BTC shows that institutional investors continue to exercise caution when investing in the market.

That’s understandable, given the stance that the Fed has taken when it comes to the economy. In an effort to control inflation rates, the Fed has adopted what is known as a “hawkish” stance, causing investors to cling to capital.

Outflows remain fine

Outflows were not just recorded in bitcoin alone, although that was the focus of the week. The second largest cryptocurrency by market capitalization, Ethereum also saw outflows totaling $1 million for the same time period. Investors had been very bearish on the digital asset until the announcement of the merger changed sentiment. However, it is obvious that the bullish sentiment did not last very long.

Digital investment products, just like bitcoin, have now marked their third consecutive week of outflows. It saw outflows reach $27 million for the week. The majority of the outflows had come from three countries, including the United States, Sweden and Germany, with a combined total of $26.5 million.

Interestingly, smaller outflows had flowed into other DeFi platforms such as Solana, Cardano, Uniswap, Tezos and Chainlink. Most of the inflows had come from Brazil, with a total of 1.2 million dollars.

The market, in general, is still struggling despite bitcoin recovering above $20,000 again. There is very weak momentum making this a seller’s market.

Featured image from Forbes, chart from TradingView.com

follow Best Owie on Twitter for market insights, updates and the occasional funny tweet…