$32M Outflows From Bitcoin as Crypto Prices Hit Six-Month High

• Bitcoin prices hit a six-month high above $25,000 last week.
• CoinShares reported that crypto funds outflows totaled $32 million last week.
• Short Bitcoin investment products accounted for $3.7 million in inflows due to negative sentiment from US regulators cracking down on the industry.

Crypto Asset Investment Outflows

CoinShares reported that total crypto funds outflows totaled $32 million last week, with almost $25 million of the outflows being in Bitcoin products. This was the largest single week outflows since December last year and short Bitcoin investment products accounting for $3.7 million in inflows due to negative sentiment from US regulators cracking down on the industry sectors.

Bitcoin Price Hit Six-Month High

Despite registering fund outflows, digital assets still saw significant price appreciation as Bitcoin tested bears‘ resolve above the $25,300 zone and reached its highest price level in six months last week. The mid-week positive sentiment helped digital asset management firms register a total of $30 million in inflows, pushing the total assets under management in exchange-traded products (ETPs) to its highest level since August 2020.

US Regulatory Crackdown

The US Securities and Exchange Commission (SEC) increased their crackdown on multiple industry sectors such as stablecoins and staking services, leading to a market selloff with crypto outflows hitting a total of $62 million. Despite this regulatory pressure, Bitcoin managed to maintain its price levels which led to overall market positivity over the week and increased investor sentiment towards digital assets as an asset class.

Increased Investor Interest

The surge in Bitcoin prices over the past few weeks has also seen investor interest increase significantly with institutional players entering into long positions for BTC derivatives contracts across major exchanges such as CME Group Inc., Bakkt LLC and LedgerX LLC. This increased institutional demand has been one of the main drivers behind BTC’s recent surge past key resistance levels such as$20K and now past$25K mark.

Final Thoughts

Overall, it appears that despite regulatory pressure from US authorities, investors are still optimistic about BTC’s prospects going forward due to increasing institutional activity and potential macroeconomic tailwinds such as inflationary pressures caused by central bank policies like quantitative easing (QE). As more big players enter into long positions for BTC derivatives contracts across major exchanges this could potentially lead to even further price appreciation over coming weeks or months ahead so investors should definitely not ignore these bullish signs when making their investments decisions going forward