The continuing negativity in the crypto market has financially drained many coins, with Coinshares reporting negative outflows of $102 million over the last week.
Bitcoin and Ethereum continue to experience heavy outflows, with $57 million leaving Bitcoin the previous week alone. This brings the month-to-date total so far for bitcoin to $91 million.
While Ethereum recorded a week of outflows of $41 million, bringing total year-to-date outflows to $387 million. As the Federal Reserve continues its aggressive monetary policy, digital asset investment product flow has remained turbulent.
The crypto markets have been volatile as of late, but Cardano and XRP managed to attract some positive inflows compared with the huge outflows seen for Bitcoin or Ethereum.
The recent inflation numbers have been larger than anticipated, adding to the negative sentiment on crypto markets. The Federal Reserve will raise interest rates this week to curb increasing costs.
It has been a tough week for US stocks, with the Nasdaq dropping into the bear market territory. Bitcoin and other cryptocurrencies have often behaved similarly to risky assets like equities, which means their price can be linked together too.
Cryptocurrencies reached their lowest levels in 2022, primarily due to investors selling risk assets. Also, Crypto lending platform Celsius halted withdrawals for its customers, raising concerns about contagion on the broader markets.
Cryptocurrency markets hit a new low on Monday, with market capitalization falling below $1 trillion for the first time since February 2021. At the time of writing, it was worth almost 960 billion dollars.
As of the time of writing, Cardano is up 15% at $0.505 while[tps_footer][/tps_footer] XRP dipped to lows near $0.293 before rebounding nearly 4% to trade at $0.31.
Brad Garlinghouse, the CEO of Ripple, has assured investors that it will probably only be temporary and not something to worry about.
"Days like today are never what you hope to see, especially in an industry with as much incredible talent as crypto." If you recently joined the industry and haven't seen a downturn like this, know that this too shall pass (advice from someone who's seen a few downturns over the years)."