Yesterday, the total cryptocurrency market cap experienced a sharp decline of 5% from $3.33 trillion to $3.14 trillion. It has since recovered and currently stands at $3.28 trillion, showing a decline from December levels but remaining above the $3 trillion mark.
Digital asset investment products saw a net inflow of $48 million over the past week. While the first half of the week witnessed nearly $1 billion in inflows, the release of new macroeconomic indicators and the Federal Reserve’s minutes, signaling a stronger U.S. economy and a more hawkish stance, triggered $940 million in outflows during the latter part of the week.
US Bitcoin Spot ETFs started the week recorded more outflows, with -$284.1m outflows on Jan 13. This is almost double the outflows recorded on the last trading day of last week, Jan 10.
The average BTC trading volume has declined since December, currently sitting at more than 50% below the peak levels observed in November and December. This trend suggests a cautious market sentiment, with participants exhibiting uncertainty about future developments and a reluctance to commit amid fears of making unfavorable decisions.
Meanwhile, the Bitcoin balance on exchanges continues to decline, indicating diminished selling pressure. This is typically a bullish signal since it means coins are held for future purposes other than speculation. However, Whales have been selling BTC, though at a slower pace since the beginning of the year compared to a month prior in December.