Aliens TLDR

According to data from the crypto investment and research firm CoinShares, crypto-backed investment funds lost a total of USD 141m in capital last week, a sharp reduction from the USD 274m that were added the week before.

The outflows last week mainly came from funds backed by bitcoin (BTC) , which saw outflows of close to USD 154m.

These funds saw inflows of USD 9.7m, with CoinShares suggesting investors see these funds as “safer relative to single line investment products during volatile periods.” Explaining the moves in the market, analysts at Genesis Global Trading said in a note cited by Bloomberg that BTC is likely to stay in its current range between USD 29,000 and USD 31,000 “for the next couple of weeks.” Others, however, said more downside volatility should be expected before the market once again moves higher.

“[...] the stablecoin percentage held by wallets actually climbed in relation to the declining holding percentage in March,” the report said, adding that the fall in March was “a precursor to a strong rebound within the broader crypto market.” Moreover, the report also said that it has noticed a spike in activity on the Bitcoin network since March.

Lastly, crypto analytics firm Glassnode wrote in its weekly newsletter on Monday that BTC has now traded lower for eight consecutive weeks, making it the “longest continuous string of red weekly candles in history.” It added that signals from crypto derivatives, including the implied volatility (IV) of BTC options, suggest there is still fear of further downside for “the next three to six months.” In addition, on-chain signals are also looking weaker with lower demand for blockspace on both the Bitcoin and Ethereum networks.