Last week the capital outflow from crypto funds turned out to be the largest in the history of observations. It amounted to $942 million, according to Coinshares International Ltd.
More than $12 billion has flowed into funds over the past seven weeks, helping bitcoin soar to $73,798 in mid-March.
However, in the second half of the month, the digital currency started to become cheaper, which forced institutional investors to reconsider their tactics.
According to James Butterfill, head of research at Coinshares, the BTC correction had a negative impact on investor sentiment, and they decided to reduce their presence in the market.
Outflows from the Grayscale fund exceeded $2 billion last week, and only an inflow of $1.1 billion into spot bitcoin-ETFs partially offset the losses.
Santiment recorded the cancelation of small and mid-sized wallets’ reserves in March. Usually, the capitulation of investors holding a small volume of cryptocurrency precedes a new stage of its ascent.
Experts noted that BTC added 28% after 1.1 million wallets sold all their reserves between September 23 and October 23.
From January 21 to February 13, the reserves of 757,000 addresses were canceled, and then the cryptocurrency rose 24%.
311,000 BTC wallets were liquidated between March 10 and March 20. After that, the digital currency began to consolidate. This indicates preparation for a new run, Santiment believes.