Last week, investment funds in digital assets experienced a significant outflow of approximately $1.73 billion, marking the largest withdrawal since November. This trend was particularly evident in the United States, where leading investors increased redemptions, resulting in a notable decline in Bitcoin and Ethereum exchange-traded funds (ETFs). Bitcoin and Ethereum, the two largest cryptocurrencies globally, are often included in portfolios through various ETFs that track their prices, allowing investors to gain exposure without directly purchasing the cryptocurrencies. However, recent market downturns and uncertainty have prompted investors to withdraw cash, increasing pressure on the crypto market. Volatility in cryptocurrency prices and global financial market uncertainty have shifted investor behavior towards more cautious positions to mitigate potential losses. This has reduced market liquidity and raised concerns about continued downward pressure on cryptocurrency prices. The current state of the crypto market is also influenced by global financial policies, inflation rates, and other economic factors. Investors are advised to consider the prevailing market conditions and potential risks when formulating strategies. Stable financial policies and positive developments will be crucial for the market’s recovery in the future.
Source: decrypt
