The 'Largest' Ethereum Outflow Since the Merger: $35.6 Million Withdrew
The crypto ecosystem has seen money outflow rather than inflow due to a number of unfavorable circumstances. The SEC has recently filed cases, which have further harmed community sentiment. Even institutions have been being cautious, leaving aside retail.
Cryptocurrency and other associated digital asset investment products had outflows of $88 million over the previous week. As a result, the string of negative flows has resumed, and the outflows over the previous eight weeks have increased to $417 million. The recent weekly report from CoinShares claims that the uncertainty around interest rate hikes has been a major factor in shaping institutional behavior. The study specifically mentioned,
“We believe that this is monetary policy related, with currently no clear end in sight to interest rate rises, leaving investors cautious.“
Bitcoin saw the biggest outflow on the personal front. $51.6 million was sucked out of the ecosystem in the last week alone. On the other hand, altcoins experienced "mixed fortunes." While MATIC saw an outflow, Litecoin, XRP, and Solana all saw modest inflows. The report made note of,
“Interestingly, on aggregate, altcoins have seen inflows year-to-date (except Tron), in stark contrast to Bitcoin and Ethereum.“
Since Merge, Ether has recorded the greatest outflow.
Ethereum, the top-ranked altcoin, ultimately saw a substantial outflow. Institutions withdrew $35.6 million from ether-related investment products over the past week. The most recent figure actually represents "the largest single week of outflows since the Merge in September last year." On the one hand, the asset's price is under some bearish pressure as a result of this. However, at this point, there are still some encouraging factors to consider.
Over the past few months, Ethereum has been on a "deflationary" path. In fact, it is at its most deflationary point since the Merge at this point. Additionally, the supply growth is currently at -0.315% annually. Eventually, this might have a good effect.