The cryptocurrency market remains in a downward trend because virtual assets endure increasing pressure. The cryptocurrency industry faces unfavorable conditions after Bitcoin maintained unsteady six-digit prices while investors withdrew their funds from crypto-oriented products and multiple businesses launched controversial tokens.
The CoinShares data shows Bitcoin exchange-traded funds (ETFs) along with other crypto investment products suffered a total withdrawal of $415 million during the latest weekly period. The market witnessed its first outflow after 19 consecutive weeks of buildup that provided over $30 billion worth of investments.
The withdrawal of $430 million represented the total amount that Bitcoin-focused ETFs experienced in outflows during this period. Recent market changes have led BTC ETFs to accumulate a total loss of $22 million since February started while remaining in a declining position.
ETH Sees Withdrawals While Investors Shift To Altcoins
ETH experienced modest financial withdrawals as the second largest cryptocurrency after Bitcoin but maintained lower overall outflows compared to BTC financial products. Investment products linked to ETH experienced $7.2 million in fund withdrawals as institutional investors appeared increasingly less interested in the market.
The investment community now shows preference toward XRP and SOL and ADA and LTC instead of Bitcoin-related funds. These instruments differ from Bitcoin and Ethereum ETFs because they lack the necessary regulatory approval to operate as exchange-traded funds. Alternative crypto funds based on XRP got $8.5 million while Solana received $8.9 million and Cardano captured $1.9 million while Litecoin gained $1.2 million.
Investor interest has shown a substantial drop even with obtained capital inflows. The total cryptocurrency investment increased marginally in these small alternative digital currencies as investors displayed more caution through allocating funds with a 30% average decrease from their previous week volumes.
Bitcoin developed its own independent movement as it became separated from the S&P 500 during its latest market fluctuations. How much this decline in dependency will help Bitcoin or if continued market outflows will affect its performance during future weeks remains a pending question.
Market participants across the cryptocurrency domain will closely track price shifts and regulating bodies as well as institutional uptake patterns to determine the future direction of digital finance.
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