Institutional investors shed $133 million worth of Bitcoin (BTC) investment products last week, marking the largest week of outflows since June last year.
According to the latest edition of CoinShares’ weekly Digital Asset Fund Flows report, the overall digital asset fund outflows for the week ending April 29 totaled $120.1 million, with the large Bitcoin outflows marginally offset by a surprise $38 million worth of inflows for FTX Token (FTT) products.
The $132.7 million worth of outflows from BTC funds last week, brings the month-to-date outflows for April to $310.8 million.
The last time BTC funds saw this level of outflows in a single week was during a strong bearish trend in June 2021 as a result of major FUD in the news including Tesla halting BTC payments for its cars over environmental concerns and China rolling out its crypto mining ban.
CoinShares noted in the report that there doesn’t appear to be a strong indicator of why a similar level of bearish investment sentiment had resurfaced last month, but did point to a couple of potential factors:
“It is difficult to ascertain the precise reason for this other than the hawkish rhetoric from the US Federal Reserve and the recent price decline.”
Like many other top assets and various stock market indexes, the price of BTC has suffered significantly over the past 30 days, dropping roughly 18.2% to sit at $37,970 at the time of writing. Many onlookers attribute this to fears that inflation and the Federal Reserve’s upcoming interest rate hikes will see the price of BTC tank further.
In a broader view, the…