- Crypto funds saw major outflows last week as investors pulled nearly $1 billion, but Bitcoin and altcoins are now rebounding
- Bitcoin dipped below $60k over the weekend but recovered back above $70k; still below its all-time high from earlier this month
- Solana, Avalanche and Bitcoin are up 3-9% in last 24 hrs; Bitcoin’s next halving in less than a month should spur renewed bullish momentum
Crypto funds saw major outflows last week as investors got cold feet. But Bitcoin and others are bouncing back.
Outflows from Bitcoin and Altcoin Funds
After seven straight weeks of inflows totaling billions of dollars, investors pulled nearly $1 billion out of crypto investment funds last week. The outflows were largely focused on Bitcoin, including the Grayscale Bitcoin Trust ETF (GBTC). Many investors have been redeeming shares from GBTC since it converted from a closed-end fund to an ETF in January. European altcoin funds also saw significant withdrawals.
Bitcoin Price Trends
Bitcoin’s price dipped below $60,000 over the weekend but has now recovered back above $70,000. The cryptocurrency is still below its all-time high of $73,000 from earlier this month. Prior to last week’s outflows, investors had pumped money into crypto funds for seven consecutive weeks. Newly approved Bitcoin spot ETFs have proven especially popular.
Signs of Renewed Strength
There are indications the crypto market is rebounding from last week’s cooldown. Bitcoin is on track to return above $70,000. Of the top 10 cryptocurrencies by market capitalization, Solana (SOL) and Avalanche (AVAX) have posted the biggest gains over the last 24 hours. Solana is up 9% while Avalanche has risen over 5%.
Meanwhile, Bitcoin and Ethereum are both up around 3% to start the week. There’s now less than a month until Bitcoin’s next halving, which will cut the mining reward from 6.25 BTC to 3.125 BTC. The halving has historically been a catalyst for renewed bullish momentum.
Conclusion
After hitting the brakes last week, the crypto market looks poised to shift back into drive. While short-term volatility remains, the long-term outlook continues to appear bright. Major catalysts like the Bitcoin halving should help power cryptocurrencies to new highs through the rest of 2022 and beyond.
