- Global cryptocurrency products experienced outflows of $1.7 billion last week, resulting in total withdrawals of $6.4 billion over the last five weeks.
- Bitcoin products recorded the largest outflows during this period, amounting to $5.4 billion.
- Recent on-chain data indicates that long-term holders continue to accumulate Bitcoin despite recent dips in the market.
Cryptocurrency exchange-traded funds (ETFs) continued their trend of outflows last week, causing withdrawals to reach $1.7 billion. This brings the total outflow figure to $6.4 billion over the previous five weeks, according to the latest weekly report. However, analysis from CryptoQuant reveals that long-term investors remain engaged in purchasing Bitcoin, even amid recent market fluctuations.
Outflows from Bitcoin and crypto products, but long-term holders exhibit strength
Cryptocurrency products faced another week of outflows, totaling $1.7 billion recently. This marks the 17th consecutive day and the fifth straight week of withdrawals. Consequently, investors have reduced their holdings by a total of $6.4 billion during this duration, as detailed in the weekly report.
Moreover, it was noted that the assets under management (AUM) for crypto products have dropped from last year’s peak of $134 billion down to $48 billion.
In the US, the most significant outflows occurred, amounting to $1.16 billion, which accounts for 93% of all withdrawals during this negative timeframe. This investor behavior towards digital asset ETFs may stem from a mix of macroeconomic issues and financial pressures.
Switzerland and Germany also contributed to the outflows, reporting $528 million and $8 million, respectively.
Additionally, Bitcoin ETFs faced outflows of $978 million last week, which brings their total losses to $5.4 billion over the last five weeks. The leading cryptocurrency fell below $80,000 during the period as macroeconomic factors continued to impact the market.
Despite this downturn, long-term Bitcoin holders are still accumulating BTC.
Data from CryptoQuant indicates a rapid increase in the amount of BTC held for three to six months, as shown by the Realized Cap UTXO Age Bands—this metric illustrates the percentage of Bitcoin distributions based on their holding duration.
BTC realized cap UTXO age bands
The ongoing accumulation illustrates the determination of long-term investors to hold their positions and acquire additional BTC. This behavior mirrors patterns seen during last year’s lengthy market correction.
“Historically, such resilience from Bitcoin holders has been pivotal in forming market bottoms and initiating new upward trends,” noted a recent report.
This trend may indicate that Bitcoin is undergoing a healthy correction rather than transitioning into a bear market. Notably, firms like Strategy have been accumulating BTC amid recent price volatility.
Last week, Strategy announced a modest purchase of 130 Bitcoin for $10.7 million, averaging about $82,981 per BTC.