Crypto Markets Show Positive Signs as Bitcoin Hints at $18k

• Coinshares, the largest digital asset investment group in Europe, believes there is only „minor negative sentiment“ in the crypto markets.
• Bitcoin is threatening to touch $18,000 for the first time since mid-December, while outflows from global crypto funds have dropped to $9.7 million.
• Coinshares analysis reveals that there has been persistent outflows from crypto funds over the past six months, but the inflows and outflows have canceled out to remain relatively flat.

Crypto markets have been experiencing a bear market for most of the past year, but there are signs that sentiment is starting to improve. Europe’s largest digital asset investment group, Coinshares, believes that there is only „minor negative sentiment“ in the crypto markets and Bitcoin is threatening to touch $18,000 for the first time since mid-December.

Recent analysis from Coinshares indicates that outflows from global crypto funds are starting to wane. Bitcoin saw just $6.5 million in outflows, indicating that sentiment „remains negative,“ but only just. Overall, digital asset investment products saw outflows totaling US$9.7m, which highlights continued mild negative sentiment that has persisted for the last 3 weeks.

The chart below showcases the persistent outflows from crypto funds, consistent over the past six months, with only five weeks of inflows throughout the period. However, outflows have failed to amass any substantial volume, as figures suggest inflows and outflows canceled out to remain reasonably flat. The largest weekly outflow over the past 52-week period reached roughly $175 million, while the most significant inflow hit around $350 million. Eighteen weeks of outflows compare to seventeen weeks of inflows throughout a challenging bear market across the past 52 weeks.

Overall, there are positive signs emerging from the crypto markets. Coinshares‘ analysis shows that outflows have dropped to $9.7 million and Bitcoin is threatening to reach $18,000, indicating that the bear market may be coming to an end. It will be interesting to see if the positive sentiment continues in the coming weeks and months.