According to the latest report from CoinShares, digital asset investment products saw significant outflows of $32 million last week, including Bitcoin, marking the largest since late December 2022.
Bitcoin was hit the hardest by the negative sentiment, experiencing nearly $25 million in outflows. Meanwhile, short-Bitcoin investment products received inflows of $3.7 million.
Although the outflows were much higher mid-week at $62 million, sentiment improved by Friday with inflows of $30 million. However, the negative sentiment was not reflected in the broader market as Bitcoin prices increased by 10% over the week.
This price appreciation pushed total assets under management (AuM) to $30 billion, their highest level since August 2022. The report suggests that this may be due to ETP investors being less optimistic about recent regulatory pressures in the US compared to the broader market.
Apart from BTC, other cryptocurrencies also experienced mixed sentiment, with Ethereum, Cosmos, Polygon, and Avalanche seeing outflows of $7.2 million, $1.6 million, $0.8 million, and $0.5 million, respectively.
Meanwhile, Aave, Fantom, XRP, Binance, and Decentraland all saw inflows ranging from $0.36 million to $0.26 million. On the other hand, blockchain equities saw inflows of $9.6 million last week and have seen six consecutive weeks of inflows, highlighting a more constructive sentiment amongst investors.
Bitcoin’s Dormant Wallets Show Surge In Activity
However, there’s another development that has caught the attention of the crypto community – a sudden increase in the number of dormant Bitcoin wallets. According to a tweet from analytics firm Glassnode, the amount of BTC supply that was last active 5-7 years ago has just reached a 5-year high. In fact, it currently stands at 1,611,029.492 BTC, which is worth over $80 billion at current prices.
This means that more than 1.6 million BTC, stored in addresses that have been inactive for at least five years, have not been moved. The increase in the number of dormant Bitcoin wallets is significant for a couple of reasons. Firstly, it indicates that a significant number of BTC holders have been holding onto their coins for a long time without any intention of selling them.
Secondly, it suggests that these long-term holders have a strong belief in the future of Bitcoin and are confident that it will continue to grow in value. Glassnode’s report also reveals that these long-term holders have been accumulating more Bitcoin over the past year, with the amount of Bitcoin held in these dormant wallets increasing by over 400,000 BTC in the past 12 months alone.
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