According to analysts from CoinShares, the outflow of capital from crypto assets over the past week amounted to more than $72 million. We are talking about funds such as Grayscale or Proshares, which allow institutional investors to invest in products related to cryptocurrencies.
There are two possible reasons for the outflow:
1→ Investors reduce risks as they fear the fall of BTC after today's Fed decision.
2→ Signs of weakness in demand around the key USD 30k level.
Note that the bulls failed to gain a foothold above this psychological mark in mid-April, and failed to exceed it at the end of April. Thus, the current quote returned to the area of supply and demand balance (shown in green), which was formed in mid-March. In other words, a price increase does not attract new buyers to the market.
So far, the BTCUSD price is supported by the median line (1) of the rising channel, but it can be broken by the bears if USD 30k continues to resist the rally that has been in place since the beginning of the year.
This article represents FXOpen Companies’ opinion only, it should not be construed as an offer, solicitation, or recommendation with respect to FXOpen Companies’ products and services or as financial advice.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.