Bitcoin outflows hit $10.4 million in the week ended July
16, after outflows of $6.9 million the previous week. For the month of July,
bitcoin outflows amounted to $15 million, though inflows for the year were
still a robust $4.2 billion.
The overall crypto sector had net inflows of $2.9 million in
the latest week, data showed.
The world's largest cryptocurrency in terms of market
capitalization was down 12.1% in price this month. On Monday, it was testing a
key support of $30,000 and was last down 3.4% at $30,694.
"Bitcoin is looking precarious and is trading lower
alongside global markets as concerns of economic recovery rise," said
Pankaj Balani, chief executive officer at derivatives trading platform Delta
Exchange.
"The volatility has also started to spike up... We can
see sharp moves on the downside if bitcoin breaks below $30,000
convincingly," he added.
That said, James Butterfill, investment strategist at
CoinShares, pointed out that bitcoin outflows last week were minimal relative
to May and June this year. He also believes that the timing of some of the
crypto investment product launches, in which investors gained access for the
first time, has led to recent profit-taking.
Ether-based investment products and funds, the token used
for the Ethereum blockchain, had $11.7 million in net inflows last week. So far
this year, ether inflows were close to $1 billion.
Ether's price, however, was down 20% against the U.S.
dollar, and was last 4% weaker at $1,819.
Grayscale remains the largest crypto asset manager, but has
seen its assets under supervision slide further, to $27.681 billion.
CoinShares, the second-biggest digital asset manager, saw
its AUM dip to $3.1 billion from $3.3 billion the previous week.