$61 million outflows per week in January from the industry resulted in a big problem for the newcomers to get started with crypto investments.
After a better pump in the crypto market in 2021, many experts claimed that the crypto industry will face a huge downfall in 2022 and also much negative news against the momentum of the crypto market resulted in a huge panic.
On the situation of the crypto market in January 2022, The Financial Times published a report by taking the data reports of crypto blockchain tracker platform CryptoCompare.
According to the data of CryptoCompare, January month saw a record-breaking outflow of money in comparison to January 2021. Every week of January of this year saw $61 million outflows, while in Q1 2021 there was a net inflow of $4.5 billion in total.
Michael Sonnenshein, CEO of Grayscale, noted that investment by the retail investors was continuously increasing but the outflow of the money was taking because of the institutional investors getting influenced by interest hike calendar announcements.
“It’s important to note that there’s still significant investor demand for digital asset investment products, but institutions seemingly reacted to the Fed by offloading their positions.”
The majority of the analysts believed that 2022 will see at least three times hike in interest, while 2023 will see 5 times hike in interest rate.
On 21 January, Grayscale Bitcoin Trust (GBTC) faced a correction of more than 29%, according to data available at Ychart.
Grayscale is a popularly known global company, which is known to give its Bitcoin spot ETF like option to its users with the concept of Bitcoin trust (GBTC). A few months ago, Grayscale applied with the US SEC to change its Bitcoin trust into Bitcoin spot ETFs. But recent decisions on multiple spot ETF applications by the SEC clearly showed that there are very rare chances to see any Bitcoin ETFs in the US, at least in next few years.
Read also: Dogecoin hits another milestone on Twitter