The bear market in crypto persists
Against the backdrop of the prolonged decline in major cryptocurrencies like Bitcoin and Ethereum, investors continue to withdraw from Bitcoin ETFs in the US market. According to analytics firm CoinShares, on Thursday the outflow from Bitcoin ETFs amounted to $228 million, interrupting a three-day inflow streak.
At the same time, Solana ETFs also showed the first signs of outflows since February 2023. This indicates that the bearish sentiment in the crypto market as a whole is persisting, despite periodic attempts at recovery.
It's worth noting that the crypto market has shown high volatility since the beginning of 2022 against the backdrop of the Fed's tightening monetary policy, a decrease in risk appetite among investors, and a number of high-profile bankruptcies in the crypto industry, such as the collapse of the FTX exchange.
Expert assessment
The continuation of outflows from Bitcoin ETFs indicates that investors are maintaining concerns about the further dynamics of the crypto market. Despite periodic attempts at recovery, uncertainty about the impact of the Fed's actions and the macroeconomic situation as a whole still prevails.
At the same time, investments in cryptocurrencies still carry significant risks, and many retail investors are likely to prefer to lock in profits or minimize losses by exiting their positions. Only the most experienced and diversified market participants can afford to maintain their crypto investments in the hope of a long-term market recovery.