Where did all the money go as the Bitcoin market continues to lose money? Ethereum may be the biggest winner

Original title: Where did the money go as the Bitcoin market continues to lose money? Ethereum may become the biggest winner

Source: Cailianshe

Investors pulled money out of bitcoin products for a second straight week in the seven days to July 16, with many likely taking profits on long-held positions, while ether saw inflows for a third straight week, according to CoinShares data.

According to the firm’s latest weekly traffic report released on Tuesday, traffic for the Bitcoin asset fell 10.4% over the week, while traffic for Ethereum rose 11.7%.

Bitcoin lost about 7% of its value in the week to July 16, dropping below $32,000. It has since fallen another 6.5% to around $29,720 as investor risk aversion rose in global markets this week amid a surge in COVID-19 cases.

Since peaking at $64,000 in April, Bitcoin has halved in value, though it is still up 200% over the past year. James Butterfill, investment strategist at CoinShares, said he believes the outflows are partly due to long-term investors taking profits in case Bitcoin falls further in the coming months.

In 2015, Bitcoin traded between lows of around $110 and highs near $500. Since then, Bitcoin has gained nearly 3,000%.

“Those investors who are exiting, maybe not necessarily for bearish reasons, but decided to take profits now, maybe their thinking is, I should have sold at $55,000, but it’s down to $30,000, so I’m going to take profits here because I’m concerned that the price of Bitcoin isn’t going to move much over the summer,” Butterfill said.

Meanwhile, ether has also fallen by about 13% over the past seven days to around $1,748.85, according to Coinmarketcap data. After peaking at more than $4,300 in May, ether has also lost about 50% of its value. However, it is still up more than 600% over the past 12 months.

Investors are hoping to profit from the upcoming Ethereum network upgrade. Ethereum 2.0 is scheduled to launch on August 4, and some investors may buy it given that the transition will lead to a reduction in supply and a potential sharp price increase.

Data shows that Bitcoin products are the only products that have seen capital outflows in the past week, while other cryptocurrencies have seen small inflows of funds.