The Institutional investors faced yet another blow, with “poor sentiment” around Bitcoin, which resulted in the outflow of digital asset investment products for five simultaneous weeks. According to the latest data, BTC’s outflow volume totalled $32 million from May 15 to May 19, making it the fifth week of outflow. James Butterfill, the head of Coinshares shared that the “negative sentiment” was centred around the usage of Bitcoin, which seems to be a recurring phenomenon in the trends of recent incidents that took place during the past five weeks. Five weeks of continuous downfall resulted in $232 million worth of outflows.
The price of BTC took a major hit resulting from the five weeks from April 21 to May 19, dipping roughly 4.8% to sit at $26,842, whereas Bitcoin was priced at $27,021 around the same time. A substantial “big push” is awaited by the traders after the five-week lull, which would trigger and lead to a hike in BTC prices. All eyes are on the Federal Reserve’s next decision on the hike of interest rates, likely in June.
According to Butterfill, the year 2023 saw substantial outflow amounting to $112 million, with 90% of the total sum inflowing in May alone. However, the synchronized negative sentiment remains inexplicable. The recent week saw the second largest outflow concerning short-Bitcoin funds, leading to investors reducing exposure by $1.3 million. Ether-related products followed suit with $1 million worth of outflow.
Germany topped the outflow race with $24.1 million, with the US being a close second, accounting for $5 million. This comes despite the Economic and Financial Affairs Council of the EU cohesively pointing out the progress of Markets in Crypto Assets regulation on May 16. In theory, the regulation should lead to a bullish crypto market for the European Union.