Bitcoin hit with record weekly outflow as rally ebbs -CoinShares data
(Reuters) - Bitcoin posted a record weekly outflow, with overall sentiment on cryptocurrencies turning cautious as the digital asset's searing rally hit a wall, data from digital currency manager CoinShares showed on Monday.
Outflows for bitcoin hit $21 million for the week of April 23, the largest weekly outflow on record. Total weekly inflows for the sector were just $1.3 million, the lowest weekly figure since October 2020.
That said, CoinShares said outflows last week were 0.05% of the crypto sector's assets under management, while weekly inflows this year averaged 0.6%.
Total assets under management were $54.3 billion as of last week, down from $64.2 billion in mid-April.
Amid serious coal mine accidents in China's Xinjiang, Shanxi and Guizhou provinces, the Chinese government directed local coal-based power stations to conduct inspections of security measures. Data centers in Xinjiang, including bitcoin mining farms, had to shut down due to subsequent power cuts, according to media reports.
After hitting a record high just under $65,000 in mid-April, bitcoin has plunged nearly 25%. On Monday though, the world's largest cryptocurrency in terms of market capitalization rallied as much as 10% and last traded at $54,031 , highlighting the asset's extreme volatility.
The second largest cryptocurrency ethereum, meanwhile, showed strong inflows of $34 million. So far this year, inflows were $792 million, or 8% of total AUM, reflecting renewed positive sentiment among investors.
Grayscale remains the largest digital currency manager, with $41 billion in assets as of April 23, down from $49.5 billion the previous week. CoinShares, the second biggest and the largest European digital asset manager, oversees about $5.2 billion, slightly down from $5.7 billion in assets as of the mid-April.
