In cryptocurrencies, Bitcoin prices today continued to trade below the $40,000 mark as the world’s largest cryptocurrency by market capitalization declined over 2% to $38,107, as per CoinDesk. The decline in price puts Bitcoin back in the top end of a $30,000 to $40,000 trading range that’s been in place since a cryptocurrency rout in May.
Ether, the coin linked to ethereum blockchain, and dogecoin were also lower more than 2% at $2,517 and $0.19 respectively. Other digital coins like XRP, Uniswap, Litecoin, Stellar also plunged over the last 24 hours whereas Cardano was up 3%.
A lot of crypto investors took advantage of the recent spike in bitcoin and booked profits worth $2.09 billion last week, suggesting that there is a belief that the recent spike in the world’s biggest cryptocurrency was only a bearish relief rally.
According to a note by blockchain data provider Glassnode, after an extended period of very negative sentiment, and sustained downwards price action, bitcoin traded high with gusto last week. “A key question is whether this is a disbelief rally (where everyone doubts the new bull trend), or simply a bearish relief rally in a larger time-frame downtrend,” Glassnode said in a note.
Separately, Cryptocurrency investment products and funds posted outflows for a fourth consecutive week, the bulk of which came from bitcoin products, which also experienced its fourth straight weekly outflow, data from digital asset manager CoinShares showed as reported by Reuters.
Crypto outflows hit $19.5 million in the week ended July 30, with bitcoin reaching $19.7 million in outflows. Other crypto and digital investment products such as Ripple and Polka Dot, however, did show minor inflows for the week.
The outflows, prompted by negative price action in mid-May, have totaled $295 million, representing 1% of total assets under management, the report said. Still, bitcoin inflows so far this year remain at a robust $4.1 billion.
(With inputs from agencies)
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