While Bitcoin saw a total outflow of 12 million dollars, short-term Bitcoin saw a total inflow of 10 million dollars.
Bitcoin and ETH exits seen
Cryptocurrency investment products have seen small outflows totaling $2 million this week, which was a low volume week for investment products. However, this masks the broader negative sentiment as the biggest inflows are in short-term investment products.
Opinions are polarized in the US, with the latest macro data seeing a total outflow of US$14 million among investors, raising fears that the US Federal Reserve (FED) will be more hawkish than expected. cryptocoin.comAccording to the data, Short-Bitcoin, Solana, Polygon, Cardano saw entries while Bitcoin, Ethereum and Litecoin saw exits.
Bitcoin saw a total of US$12 million in outflows for the 3rd week in a row, while short-term Bitcoin saw a total of US$10 million inflows, although this negative sentiment was only from the US. We believe this reaction reflects the tension among US investors sparked by stronger-than-expected macro data releases recently, but also highlights its sensitivity to regulatory pressure in the US.
Interestingly, Ethereum has remained relatively isolated from the recent negative sentiment, seeing only $0.2 million exits last week. Small inflows of $0.6 million, $0.5 million and $0.4 million were seen on Polygon, Solana and Cardano, respectively. Blockchain stocks have not escaped the negative sentiment either, continuing to remain vulnerable to interest rate expectations, seeing a total outflow of US$7.2 million as predominantly growth-focused companies.
BTC mining difficulty
The increase in the price of Bitcoin since the beginning of 2023 has also caused an increase in the number of miners. However, the mining difficulty reached a record level of 39.3 trillion on January 16 for the first time. The increase seen in the price of Bitcoin slowed down in the last week of February. There is also an increasing demand for Bitcoin mining.
In parallel with the increasing demand, mining BTC is getting harder. However, the latest data has shown that BTC’s mining difficulty has crossed the 40 trillion mark for the first time this weekend. It stands out that this rise was triggered by BTC’s price performance and Bitcoin Ordinals. Finally, the fact that the BTC price has increased by more than 40% compared to the low recorded in November has drawn the attention of miners who want to take advantage of the trend.
