Bitcoin ‘Stuck at the Moment’ as Record Cash Flees Crypto ETFs

By April 25, 2022Bitcoin Business
Click here to view original web page at www.yahoo.com

(Bloomberg) -- Bitcoin seems to be stuck in a rut: Prices are flagging, online searches for the largest cryptocurrency and other digital assets have fallen off, fewer and fewer coins are changing hands, and crypto-related funds are seeing massive outflows.

Most Read from Bloomberg

In fact, a UBS analysis of around 160 products shows April is set to see the largest crypto-ETF outflows on record, with investors having pulled more than $417 million so far this month. A Bitcoin product from Purpose alone has seen more than $220 million come out since the end of March.

In other words, the latest bout of crypto fever seems to be breaking, much as it did after the boom and bust of 2017 and 2018. The space is also no longer notching the huge influx of new investors that it had seen in the past two years.

“The vast majority of the population seem to have little interest in crypto because it’s too complicated, too volatile, too strange,” James Malcolm, head of foreign exchange and crypto research at UBS, said by phone. “So in a sense, we’re stuck at the moment.”

Cryptocurrencies, just like other assets considered to be riskier or more volatile, have sold off this year as central banks around the world raise interest rates to fight persistently hot inflation. Bitcoin peaked near $69,000 in November before a selloff commenced, and it hasn’t been able to recover. It’s down roughly 40% since reaching that record.

Aggregated trading volumes across crypto exchanges like Coinbase and Kraken have also fallen off as interest remains muted and the flow of new investors dries up. Meanwhile, Google searches for the word “Bitcoin” have also declined, and social-media activity via the Crypto Subreddit -- as measured by things like comments and posts per day -- is down from mid-2021 levels.

All Today's Crypto News In One Place