By Alicia Maher
For a reason, Bitcoin is regarded as the leading cryptocurrency globally, and its demand tops the charts above other digital currencies globally.
However, this week’s event placed the most significant crypto in the first position in terms of investors’ panic. The BTC experienced massive exits of traders due to fears arising from market instability.
But the exits are not considered direct investments because the outflows were registered in the flexible Bitcoin-related Exchange-Traded Funds (ETFs). As such, the existing assets in the network are not affected by the exit.
BTC’s Performance Last Week
The weekly net flow for BTC is -$134 million in the present week. This indicates the highest outflows recorded by institutional investors since the beginning of the year.
In contrast to the usual pattern of events, the outflows were not evenly distributed amongst other tokens. Meanwhile, the current turn of events saw Bitcoin take 97.7% of the outflows.
The reason is that the ETFs took a big blow from the situation this week rather than the altcoin-based investment assets. As a result of this, the price of Bitcoin plummeted further.
Previous Outflows
Week in and week out, Ethereum led the outflows for most of 2022, while Bitcoin continued to record primarily inflows. For instance, BTC experienced the highest inflows among all assets, with a registered valuation of $144 million. The tide has now turned, and the reverse is currently the case.
Analysts believe that this event makes complete sense because the market suddenly became worse in just a single week. Ultimately, the market performance saw Bitcoin end below $40k over the past 24 hours.
However, at the time of writing, Bitcoin is trading above the $40k price level. It is trading at $40,158. But analysts are not convinced that the price level is strong enough to forestall any imminent price drop. As a result, a stronger push will likely see the price level attain the desired point for further recovery.
Furthermore, during the past seven days, Bitcoin has recorded losses that are reported to be more than $713 million, which is bound to impact the confidence of retail investors. It is believed that the previous massive loss also triggered the current panic mode.
According to the Accumulation Trend Score, the confidence of retail investors in the BTC network is already wavering with each passing day as the majority of other assets have shifted their attention from accumulation to distribution or are keeping their crypto funds idle pending when better opportunities emerge to cash in.
Moreover, experts believe that as long as the situation continues, investors are likely to maintain their current convictions without any action from them until things normalize.
Notwithstanding the previous positive price action of Bitcoin before the current situation, investors have only one thing on their mind, how to gain irrespective of the market condition.
That said, there is a need for the outflow trend to slow down, which is only possible after some market recovery.