Data seized from Coinshares shows that cryptocurrency funds have experienced outflows for the seventh consecutive week . The most recent reporting period which ends on June 5, recorded a net outflow of $62 million . Specifically funds focused on bitcoin and Ethereum witnessed a net outflow of $2 .7 million .
Market Anticipates Limited Upside Potential and Possible Correction
A leading blockchain analytics firm Glassnode has also observed a notable trend . Currently there is a higher influx of bitcoin and Ethereum into the market compared to dollar stablecoins . This suggests an anticipation in the market that there may not be a strong upward movement in the cryptocurrency market during the summer . Instead a moderate downward correction is believed to be possible . The former CEO of BitMEX has even suggested that the bottom for bitcoin will likely not fall below the $ 20,000 mark .
Meanwhile the dynamics of public bitcoin miners’ shares in the United States indicate that investors are placing their hopes on the bullish impact of the upcoming halving event in the blockchain . This event, which reduces the rate at which new bitcoins are created is expected to positively influence the market sentiment .
Ethereum Transaction Activity Decreases, but OTC Wallets Accumulate ETH
Turning to Ethereum, transaction activity has seen a decline and resulted in a one-third decrease in the average transaction fee for ETH over the course of a month down to $7 .3 . Additionally research conducted by Santiment which is a prominent research group reveals an increase in the number of ETH held in the top 10 over-the-counter (OTC) wallets . This accumulation of ETH by institutional players suggests continued interest in the digital asset .
As the cryptocurrency market evolves market expectations play a crucial role in shaping investor sentiment . The recent outflows from crypto funds indicate a shift in perception with market participants preparing for potential downside risks and a more tempered market in the coming months . However the dynamics surrounding bitcoin’s halving event and the accumulation of Ethereum in OTC wallets hint at inherent confidence and long-term prospects within the crypto ecosystem .
