Bitcoin-based cryptocurrency investments have witnessed another week of outflows from what they were a bad week for Bitcoin and other cryptocurrencies. Bitcoin investors in particular were disappointed to see the world’s biggest drop in asset prices in a week, will temporarily fall below $60,000. According to the latest incoming data from CoinShares, this correction has also affected cryptocurrency investment products. Notably, cryptocurrency investment products recorded $584 million in outflows last week extend outflows to $1.2 billion in two weeks.

A real correction is underway for Bitcoin

According to CoinShares Reportmost outflows have been concentrated towards Bitcoin, with the cryptocurrency’s investment products recording $630 million last week. As the report notes, this outflow sentiment can largely be attributed to growing pessimism among cryptocurrency investors regarding the Fed’s interest rate cuts this year. Moreover, the continued outflow suggests that a real correction could be on the horizon for Bitcoin.

However, while this correction may continue, it does not necessarily translate into completely negative sentiment towards Bitcoin. This conclusion is made in featherlight of the corresponding outflow of $1.2 million in Bitcoin miniature products, suggesting that most investors do not believe Bitcoin’s value will continue to decline in the long term.

In terms of geography, the largest outflow of funds was USD 475 million from the United States. Interestingly, most of this recorded outflow came from US Spot Bitcoin ETF trading. According to the data, this was witnessed by Spot Bitcoin ETFs outflows every day last weekresulting in the lowest trading volume for investment products of $6.9 billion since their launch in January 2024. Outflows were also recorded in Canada, Germany and Hong Kong at $109.3 million, $23.8 million and $19.3 million, respectively.

Etherwhich was also the result of an unpleasant week of price action, was not left out by the negative sentiment and recorded outflows of $58 million, the largest weekly outflow in 2024.

Bucking the outflow trend, many altcoin products saw surprising weekly inflows despite spot price declines. These were led by multi-asset products, which recorded inflows of USD 98 million. Solana, Litecoin, and Polygon also saw inflows of $2.7 million, $1.3 million, and $1 million, respectively.

Are there any further price corrections ahead?

This week will be crucial in determining whether Bitcoin and other cryptocurrencies will continue to see price corrections. Time will tell whether the recent volatility is a sign of further declines or a transient slump. However, the price action seen over the last 24 hours suggests that a correction may be on the way comes to the end.

Bitcoin, Ethereum, Solana and many other cryptocurrencies have rebounded significantly, showing significant price increases over the past day. If remained on the spot marketthis upward trend could potentially lead to increased inflows into cryptocurrency investment products by the end of the week.

Featured image created with Dall.E, chart from Tradingview.com