Crypto market Biggest Outflows Since 2022, Pressure Mounts on BTC & ETH

The crypto markets are experiencing the biggest outflows of capital since 2022, and this is putting further pressure on Bitcoin and Ethereum at key levels of support.

Recent data on ETF and spot outflows indicates that there have been constant outflows, although the trading volumes have dampened somewhat compared to the earlier growth phases. The derivatives market has also contracted, with funding rates returning to normal and open interest falling, indicating a partial reset of leverage.

The $BTC market is currently testing key levels of support on the higher time frames, while the $ETH market is approaching levels of demand that have previously been attractive to buyers during periods of correction.

Spikes in outflows tend to occur during the most stressful periods, either around local bottoms or in the early stages of more significant corrections. The key now is to see whether support levels are maintained and whether spot demand comes back.

It is evident that market sentiment has turned cautious.