The crypto sector is going through a rough time as it faces a third consecutive week of outflows. The outflow amounts to 79 million dollars, marking the longest selling spree since February 2018. Comparatively, the industry witnessed a seven weeks long trend back in 2018.
Bitcoin being the face of the cryptocurrencies is experiencing its sixth consecutive week of outflows. As a result, businesses are selling their stacks of Bitcoin, which has mounted to 89 million dollars by now.
As per CoinShares, traders and businesses are having mixed thoughts on the development. The sector is experiencing more inflows in some regions while the outflows are high in others. The first half of 2021 accounts for $487 million worth of outflows through Bitcoin and related financial tools. The amount represents 1.6% of the total assets under management.
Ethereum, the second most popular crypto, is witnessing minor outflows worth 1.9 million dollars. However, compared to Bitcoin, Ethereum’s bearish experience merely amounts to 0.14% of its assets under management.
The past few weeks have been tough for the crypto sector as businesses hesitate to buy cryptocurrencies as most of them keep plummeting. The trend started after Elon’s tweet that Tesla won’t accept Bitcoin and China’s ban on cryptocurrencies.
Resultantly, Bitcoin lost almost 50% of its market value, reaching the 33,000 dollar mark. The total market capitalization of all cryptos went below 1.4 trillion dollars, almost half of the previous month’s high.
This doesn’t mean businesses are completely avoiding cryptocurrencies. For example, MicroStrategy, the renowned cloud, BI, and mobile software company, recently invested around 489 million dollars, buying 13,005 Bitcoin.
While the crypto sector keeps plummeting, businesses are earning a profit on Bitcoin. The trend marks a three-week-long outflow spree, just below the longest spree since 2018. While some companies are avoiding investing in cryptos, some are capitalizing on the opportunity to earn profits.