Cryptocurrency market shows bearish sentiment in the market

Cryptocurrency investment flows stay negative for the third week ending April 22. However, the magnitude of outflows has cooled off in keeping with CoinShares’ latest weekly report. The fund flows report highlighted that the past week recorded outflows of $7.2 million. Thus, the third consecutive week of negative flows totaling $219 million within the last three-week period continued. A constant report for the weeks ending April fifteen and April eight had antecedently recorded several outflows of $97 million and $134 million, giving space for a few late trades.

Altcoins are soaring more in terms of investors’ interest

The report marked that despite weak market sentiments, year-to-date flows stay positive at $389 million. Also, interest in Bitcoin was nearly positive, with inflows totaling $2.6 million last week.

However, Ethereum didn’t impress for the third consecutive week, with outflows totaling $16.9 million. Year-to-date flows conjointly remain negative for the second generation token at $169 million.

On the contrary, altcoins that are major competitors to ETH, like Avalanche, Solana, Terra, and Algorand, marked robust inflows of $1.8 million, $0.8 million, $0.7 million, and $0.2 million, respectively.

The overall mood is yet bearish

The profit-taking comes at a time once the accumulative cryptocurrency market cap remains below $2 trillion, with Bitcoin troubled to sustain the key level of $40,000. The volatility and momentum indicated within the Bitcoin concern and Greed Index mirrored extreme fear in the market on April 25.

And with that, technical specialists are anticipating additional downside. Bloomberg cited comments from the technology and money services firm NYDIG that noted, As it becomes more valuable to carry dollars, some investors might apportion from Bitcoin or gold to the dollar,

But, the team conjointly expects basic factors to support associate degrees to drive the expansion of Bitcoin. Analysts at Blockforce Capital told Bloomberg, “We have solely seen this outflow level from exchanges four previous times since the beginning of 2018. Three of these instances correlate with a pointy upward movement not too long after.”

Overall, blockchain equities have remained resilient within the past three weeks. Last week, they saw a flow of around $3 million despite the threat of rising interest rates wetting the sentiments, CoinShares noted.

However, project launches might need to be successful in the 1st quarter of 2022.