The cryptocurrency market is still riding the wave out as it continues to dip in price. Digital asset investors are choosing to get out of the market before they can collect more losses. Ethereum, in particular, has seen considerable outflows in the last week of June.
Ethereum Investors Taking an Exit
Ethereum, the second-largest cryptocurrency just behind Bitcoin, and its products suffered significant outflows last week, the largest on record since 2015, CoinDesk reports.
Outflows, or share redemptions, happen when investors decide to cash in their investments and exit the stock, cryptocurrency, or market.
The Ethereum blockchain supports numerous digital assets besides Etherum, such as Non-fungible tokens or NFTs and other altcoins like Ethereum Max. Ethereum differs from Bitcoin as it is meant to be used for everyday applications and designed to be accessible, while BTC's prestige is in its viability as a secure investment.
The cryptocurrency market has been seeing a steady decline since its crash in May and although small spikes in prices from individual tokens helped some investors and traders recover their losses, the overall trajectory across the board is downward and it's making some investors worried.
Funds saw $50m Ethereum outflow last week. This is the largest on record, and 5% of the total YTD inflow. Bitcoin outflows were minor at $1.3mhttps://t.co/2lOPfKWKL2
— Pillage Capital (@PillageCapital) June 28, 2021
Institutional Investors withdrew $50 million from investment products and funds on ether, Ethereum's blockchain, Reuters reports. This would be the fourth consecutive week ether experienced outflows. ETH isn't the only token experiencing outflows, though.
The cryptocurrency investment products have seen 4 consecutive weeks of outflows totaling to $313 million. And a loss of $44 million this week alone.
However, the ETH outflow movement could mark the start of a reversal for Ehtereum and its blockchain and potentially begin an upward trend after weeks of negative sentiment.
#Ethereum investment products have experienced a record outflow of $50 million last week, and this might be a signal of pessimistic sentiment among investors, concludes research conducted by @CoinSharesCo, a second-largest digital asset investment companyhttps://t.co/XNkNiH8RTn
— DeFi Teller 🦇🔊 (@DeFiTeller) June 29, 2021
Ethereum Price Prediction and Cryptocurrency Market Outlook
The crackdown on Bitcoin mining headed by the Chinese government has not let up and the cryptocurrency market can't shake off the negative sentiments as it continues to see a decline across the board.
However, it looks like Ethereum might be setting up to bounce back to a positive trajectory.
In the short term, Ethereum is making another attempt to break above its downtrend, ForexCrunch says, and it has made a considerable recovery, moving past the resistance of the lower prices days before.
It's happening...😉 Buckle in everyone #Ethereum #crypto pic.twitter.com/mcwR8RwmjP
— EvilMonkey (@EvilMonkeyDad) June 29, 2021
This rally in price could help strengthen the coin and could possibly reach $3,000 in the upcoming weeks and potentially return to a more stable price long term.
Although it could look like a brighter future ahead is waiting for Ethereum, the overall state of the cryptocurrency market could put a damper on the upward movement in price.
The market is volatile in nature and risks when investing and trading should be calculated and prepared for. Before investing money in digital assets like cryptocurrency, invest the time in research and strategy planning to mitigate losses and hopefully get the most return out of your hard-earned cash.
