Originally published on: August 05, 2024
Last week, cryptocurrency assets experienced a significant exodus as recession worries in the US and global geopolitical tensions escalated, states a recent report released by CoinShares, a leading crypto investment firm.
During the week spanning from July 28 to Aug. 3, digital asset investment products faced outflows totaling a whopping $528 million, marking the first time in four weeks for such a substantial downturn, as outlined in CoinShares’ latest digital asset fund flows report published on Aug. 5.
According to CoinShares, the recent crypto sell-off is largely attributed to concerns regarding a looming recession in the US, geopolitical unrest, and the resultant widespread market sell-offs spanning across various asset classes.
Bitcoin, the largest cryptocurrency by market value, led the digital bloodbath with outflows totaling $400 million last week, marking its first period of outflows following five consecutive weeks of inflows.
Meanwhile, Ethereum, the second-largest crypto by market cap, saw outflows of $146.3 million, with additional outflows of $2.8 million in Solana (SOL) investments.
Despite the gloomy market outlook, multi-asset crypto investment products witnessed inflows amounting to $18.1 million, while short-Bitcoin products received $1.8 million in inflows.
CoinShares also observed ongoing outflows in blockchain equities amounting to $18 million, aligning with broader tech-related exchange-traded funds. The report, covering the week from July 28 to Aug. 3, did not include the subsequent market downturn on Aug. 4 and Aug. 5.
After plummeting below the $69,000 support level on July 29, Bitcoin continued its descent to below $50,000 on Aug. 5, reaching its lowest price since February 2024.
Data from CoinGecko indicates that BTC is currently down 15.6% in the past 24 hours, trading at $51,301 as of writing. The market plummet resulted in the liquidation of 290,000 traders within 24 hours, amounting to $1.1 billion in total losses, according to CoinGlass data.
While some analysts predict an imminent market recovery, others like 10x Research CEO Markus Thielen forecast further price declines, with BTC possibly dropping to $42,000 and Ethereum dipping below $2,000.
As the crypto market navigates through turbulent times, uncertainty looms over whether a recovery is on the horizon or if further downside is imminent.
