The overall cryptocurrency / Crypto ETF market remains volatile in April 2022. Bitcoin (BTC) and the general crypto market are down 10% per. According to the most recent Bloomberg report, the market’s interest in investors in Bitcoin is decreasing.
It is evident for many reasons, including a decline in searches on the internet, fewer cryptocurrency transactions, and crypto funds experiencing massive outflows. However, the analysis of the giant of asset management UBS suggests that April is expected to be the most significant Crypto ETF outflow, with investors taking out more than half a billion dollars during the month.
The Bloomberg report states that as of the closing of March 2022, this Purpose Bitcoin ETF / Crypto ETF has reported outflows of $220 million.
In an interview with Bloomberg, James Malcolm, director of foreign exchange as well as crypto-related research for UBS, told Bloomberg:
Most people seem to have no interest in cryptocurrency because it’s too complex or volatile, and it’s just too odd. So, it’s like we’re stuck at this moment.
The Crypto ETFs are shedding funds despite the Fed’s Hawkish Halt:
The Fed’s aggressive approach to limiting the soaring inflation rate has put a shadow over fund flows to risk-on investments and ETFs that invest in crypto. Bitcoin remains 40% lower than its record peak of $69,000 and is expected to remain.
While interest is still low in the cryptocurrency market, overall trading volumes for crypto exchanges such as Kraken and Coinbase have slowed. Additionally, the conversations on social media and Google search results on “Bitcoin” have also decreased.
UBS’s Malcolm states that industry players are waiting for clarity on regulatory issues for interest to increase. But, if prices begin to rise again, investors may return, he says.
Malcolm stated that it is either in need of new talent or existing players to allocate ever-growing amounts of their time and resources to the business.
However, analysts of Blockforce Capital say that a considerable amount of Bitcoins are now in cold storage. BTC’s non-liquid supply has increased; this could indicate a good indicator.
In a note addressed to investors, analysts included:
We’ve seen this kind of outflow out of exchanges four times before the beginning of the year, and three of those occasions were correlated with a dramatic upward trend in the price not long after.
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Source: Google News Trend