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Cryptocurrency assets started seeing significant outflows last week amid growing fears of a recession in the United States and geopolitical concerns, according to a new report by the crypto investment firm CoinShares.
The week of July 28 to Aug. 3 saw digital asset investment products posting outflows for the first time in four weeks totalling $528 million, CoinShares reported in its latest digital asset fund flows report <a href="https://blog.coinshares.com/volume-194-digital-asset-fund-flows-weekly-report-578a4db60706" target="_blank" rel="noopener nofollow">published</a> on Aug. 5.
CoinShares noted that the latest crypto sell-off is believed to be a reaction to fears of a recession in the US, geopolitical uncertainty and consequent broader market liquidations across the majority of assets.
<h2 data-ct-non-breakable="true" id="bitcoin-saw-outflows-totaling-400-million">Bitcoin saw outflows totaling $400 million</h2>
As the biggest cryptocurrency asset by market value, Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) led last week’s crypto outflows, which <a href="https://etp.coinshares.com/knowledge/market-activity/fund-flows-05-08-24" target="_blank" rel="noopener nofollow">totaled</a> $400 million, CoinShares’ data suggests. The sell-off marked Bitcoin’s first outflows after five weeks of inflows.
Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>), the second-largest cryptocurrency by market cap, posted $146.3 million in outflows last week, with Solana (<a href="https://cointelegraph.com/tags/solana">SOL</a>) seeing an additional $2.8 million in outflows.
On the other hand, multi-asset crypto investment products saw inflows of $18.1 million, with short-Bitcoin also seeing inflows of $1.8 million last week.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/38726723-a102-499d-ad47-727b5533460d.png" alt="Crypto products shed $528M amid recession fears — CoinShares">
 <figcaption style="text-align: center;">
 Weekly crypto asset flows from July 28 to Aug. 3, 2024. Source: CoinShares
 </figcaption>
</figure>
“Blockchain equities continued to see outflows, with last week seeing a further $18 million, in line with outflows from broad tech-related exchange-traded funds,” CoinShares stated.
<h2 data-ct-non-breakable="true" id="analysts-expect-more-losses-with-bitcoin-dropping-to-42-000">Analysts expect more losses with Bitcoin dropping to $42,000</h2>
As CoinShares’ analysis covered the weekly period from July 28 to Aug. 3, it didn’t include the latest sharp decline across multiple markets on Aug. 4 and Aug. 5.
After losing the $69,000 support on July 29, Bitcoin continued to drop below $50,000 on Aug. 5, reaching its lowest price mark since February 2024.
<a href="https://www.coingecko.com/en/coins/bitcoin" target="_blank" rel="noopener nofollow">According</a> to data from CoinGecko, BTC is down 15.6% over the past 24 hours and is trading at $51,301 at the time of writing.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/033dc505-2d8d-4b87-8e80-369182aaae37.png" alt="Crypto products shed $528M amid recession fears — CoinShares">
 <figcaption style="text-align: center;">
 Bitcoin (BTC) 30-day price chart. Source: CoinGecko
 </figcaption>
</figure>
Following the market drop, 290,000 traders were liquidated in the past 24 hours, with total liquidations <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noopener nofollow">netting</a> $1.1 billion, CoinGlass data <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noopener nofollow">indicated</a>.
While industry advocates like Joseph Young <a href="https://x.com/iamjosephyoung/status/1820279391588692107" target="_blank" rel="noopener nofollow">suggested</a> that the “bottom is nearing,” some analysts were less optimistic about the potential BTC price moves.
Related: <a href="https://cointelegraph.com/news/ethereum-etfs-major-movements-ethe-outflow-august-2024">Grayscale Ethereum ETF outflows exceed $2B</a>
“Although Bitcoin has been in a gradual downtrend, marked by three tops and two bottoms, we anticipate the support line at $55,000 will break, potentially driving prices down to $42,000,” 10x Research CEO Markus Thielen <a href="https://mail.10xresearch.co/p/bitcoin-might-big-one" target="_blank" rel="noopener nofollow">wrote</a> in the <a href="https://cointelegraph.com/news/analysts-warn-bitcoin-downside-btc-revisit-42k">latest market update</a> on Aug. 5.
According to the analyst, Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) could further drop below $2,000. He added:
<blockquote data-ct-non-breakable="true">
 “While this may seem extreme to some, economic weakness, as indicated by our ISM report, ongoing weak market structure, on-chain data, and our cycle analysis suggest further stress ahead.”
</blockquote>
Magazine: <a href="https://cointelegraph.com/magazine/bitcoin-price-prediction-ethereum-altcoins-crypto-trader-roman-hall-of-flame-cointelegraph/">Ethereum price will lag for ‘months’ as Bitcoin surges: X Hall of Flame, Roman</a>

Crypto products shed $528M amid recession fears — CoinShares

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