Bitcoin (BTC) Leads Crypto Investment Outflows, Network Usage Low

Among all digital assets, the top cryptocurrency, Bitcoin (BTC), is leading by a huge distance in outflows from investment products. The coin has faced unfavorable market conditions, leading to slow price growth during this period.

According to CoinShares Research’s report on digital asset flows, crypto products recorded $305 million in outflows this past week.

Bitcoin and Altcoins Take a Hit in Crypto Market Crunch

Specifically, Bitcoin saw up to $319 million in outflows. On the other hand, short bitcoin investment products recorded their second consecutive week of inflows, which rounded up to approximately $4.4 million. This is the largest flow seen since March of this year. Even its ETF products are also seeing huge outflows.

Like BTC, Ethereum also had $5.7 million in outflows while its trading volumes stagnated. This metric dropped to only 15% of the levels when the US spot Ethereum ETF launched in June. Ethereum is still spiraling down with more outflows, recording more price dumps. At the time of this writing, Ethereum’s price was trading at $2,515.60, up by 1.72% in the last 24 hours and down by 8.06% in the last 7 days.

Other altcoins perform optimally in the market. Ripple-associated XRP has a market value of $0.5552 after losing 0.59% of its previous value. Tron (TRON) is a few percent higher within the same timeframe but 6.43% down in the last seven days.

The investment products of assets like Tron and XRP were flat over the trailing 7-day period.

Macroeconomic Indices to Impact Bitcoin Price

This market outlook was attributed to the unpredictable investor reaction to the stronger-than-expected economic data in the United States. The trends have now boosted the likelihood of a 50-basis point interest rate cut this month.

Over time, the digital asset class’s usual style demonstrates intense sensitivity toward interest rate cut expectations. In other words, the growth of digital assets is largely influenced by several macroeconomic indices.

According to market Analyst Ali Martinez, the tight trading range that Bitcoin’s price has exhibited since March suggests that market investors are cautious. This amount of caution comes from a close evaluation of the Federal Reserve’s monetary policies.

Ali Martinez noted that the outlook of the Exchange Volume Momentum indicator demonstrates lower investor interest in Bitcoin and decreased network usage.

Investors are concerned about preserving value, and with the potential devaluation of the US dollar, Bitcoin may see a resurgence soon. The coin’s use case has evolved from being a means to send value in a Peer-to-Peer (P2P) setting to becoming a reserve asset for corporations like MicroStrategy and Metaplanet.

BTC Rules Over Traditional Assets

Bitcoin has demonstrated the potential for a high growth rate compared to several traditional assets.

If the US Federal Reserve eventually cut rates, freeing more money into the economy, BTC’s growth might likely be amplified. Another crucial catalyst that placed BTC in a positive spotlight is the spot Bitcoin ETF advantage. Once the Fed raises interest rates and the dollar slips, institutional investors might see the coin as a better alternative to preserve value.

Overall, Bitcoin price has what it takes to surpass its current $58,300 level.