According to data from Bloomberg, money flowing out of crypto exchange-traded funds has slowed down by 97% in Q3 compared to Q2.
Investors pulled $17.6 million from crypto ETFs in Q3 in comparison to a record withdrawal of $683.4 million from the ETF in Q2.
The second quarter of 2022 saw record withdrawals from crypto exchange-traded funds with a withdrawal of $683.4 million, which affected the price of Bitcoin and other cryptocurrencies. Bitcoin’s price has seen a 60% decrease that quarter, posting a record low of $17,785 on June 17 according to data from Coingecko.
Bloomberg data reports that Q3 of 2022 saw much fewer sales, indicating that capitulation may have occurred and bearish investors are now already out of risky assets such as BTC, Ethereum, and others.
ETF Strategist at Strategas securities stated for Bloomberg:
“I wonder if the second quarter was the ‘get me out part of these funds,”
According to Sohn, the third quarter may have been where the “laggards” and investors who had been “keeping the faith mentality” are now out.
Markets have declined in recent months as central banks have increased interest rates to curb inflation.
Bitcoin Witnessed An Increase In Volume This Quarter Against GBP
Bitcoin recently witnessed increased trading volume against GBP as the fiat currencies showed weakness. Bitcoin trading volume recorded an all-time high on Sep 28, 2022, as the UK’s fiat currency was threatened.
Bitcoin has been outperforming other major currencies in the past week, with a positive increase of 6.3%. Will this outperformance continue to hold, and are investors getting “orange-pilled” on Bitcoin while losing faith in fiat currency? This is something we will continue monitoring and see how it unfolds.