Crypto Markets Show Minor Negative Sentiment as Bitcoin Nears $18K

• Coinshares, Europe’s largest digital asset investment group, believes there is only „minor negative sentiment“ in the crypto markets.
• Bitcoin is threatening to hit $18,000 for the first time since mid-December, and outflows from global crypto funds are starting to wane.
• Coinshares analysis reveals that Bitcoin saw just $6.5 million in outflows, while global crypto funds had outflows totaling $9.7 million.

Crypto markets have been on a rollercoaster ride in recent months, and the bear market of 2022 has left a lasting impression on investors. However, Coinshares, Europe’s largest digital asset investment group, believes that sentiment is beginning to turn, as Bitcoin threatens to touch $18,000 for the first time since mid-December.

Coinshares recently published a blog post that reveals outflows from global crypto funds are starting to wane, indicating that sentiment remains negative but only just. According to the analysis, Bitcoin saw just $6.5 million in outflows, while global crypto funds had outflows totaling $9.7 million. This shows that there is only “minor negative sentiment” within the crypto markets.

The chart below showcases outflows from crypto funds over the past six months, with only five weeks of inflows throughout the period. However, outflows have failed to amass any substantial volume, as figures suggest inflows and outflows canceled out to remain reasonably flat. The largest weekly outflow over the past 52-week period reached roughly $175 million, while the most significant inflow hit around $350 million. Eighteen weeks of outflows compare to seventeen weeks of inflows throughout a challenging bear market across the past 52 weeks.

The outflows from crypto funds are a sign that investors are still wary of the market, but the overall sentiment appears to be slowly improving. As the market recovers, investors are likely to become more confident in the asset class, and this will be reflected in the outflows from crypto funds. For now, however, there is still only “minor negative sentiment” in the markets, and investors should proceed with caution.