Profit-taking in Bitcoin Drives Outflows From Crypto Funds

Net outflows from digital asset investment products from April 15 to 21 amounted to $30.4 million, compared with inflows of $114 million a week earlier. This assessment was provided by CoinShares.

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A positive trend had been observed over the previous four weeks.

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Analysts noted a trend change on April 14, when Bitcoin reached the psychological level of $30,000.

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“The sell-off was the result of profit-taking in the absence of macroeconomic triggers,” the analysts explained.

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Outflows from Bitcoin products totaled $53.1 million (a week earlier inflows of $103.8 million were recorded).

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Structures enabling short positions on the first cryptocurrency attracted $1.5 million. In the previous reporting period inflows of $14.6 million were recorded.

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Ethereum funds posted inflows of $17 million ($0.3 million a week earlier), which resulted from activation of the Shapella upgrade.

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In altcoins, inflows into Polygon-based products ($1 million), which, by AUM, moved them to the fourth spot in the ranking. Outflows from XRP funds totaled $0.4 million, an exception to the generally positive momentum in the segment overall.

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In April, former BitMEX chief Arthur Hayes noted the start of a new altcoin season.

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Bobby Lee, founder of the Ballet app and former CEO of BTC China, spoke of the ‘springtime’ for Bitcoin.