Institutional investors pulled out $50 million (about Rs 370 crore) from Ether investment products and funds. The data shows that Ether suffered an outflow for the fourth week in a row. As of 2 PM on June 29, the price of Ether in India was Rs 1.59 lakh. Ether has lost about 22 percent of its value against the dollar in the month of June. However, on Monday, Ether was up 5.4 per cent at $2,091.96 (about Rs 1.55 lakh).
Here Bitcoin products and funds faced outflows for the seventh consecutive week in which $1.3 million (about Rs 9.6 crore) were withdrawn. The outflow of bitcoin for this year reached around $490 million (about Rs 3,640 crore). The price of bitcoin in India was Rs 25.90 lakh on June 29 at 2 PM (IST). The world’s largest cryptocurrency was down 8.4 per cent against the dollar in June so far. Bitcoin is down nearly 46 per cent since its all-time high of $65,000 (approximately Rs 48.2 lakh) in mid-April.
Pankaj Balani, chief executive officer of crypto derivatives exchange Delta Exchange, said, “We expect the integration of bitcoin to continue for the next few weeks unless a decisive step is taken. If the global macro environment worsens due to the dwindling pace of global liquidity. If so, it is expected that bitcoin can break the crucial level of $30,000 (approximately Rs 22.2 lakh) and challenge the previous cycle high of $20,000 (approximately Rs 14.8 lakh). and may set a classic bull trap above $42,000 (approximately Rs 31 lakh).”
Overall crypto investment products saw outflows for the fourth consecutive week with $44 million (approximately Rs 325 crore). As negative sentiment spread through mid-May, net weekly outflows have reached $313 million (approximately Rs 2,320 crore), or 0.8 percent of total assets under management.
The crackdown on the sector by China by banning bitcoin mining activities has hurt sentiments on cryptocurrencies. In addition, British and Japanese regulators have independently issued warnings against Binance, one of the world’s largest cryptocurrency exchanges. Over the weekend the UK financial regulator said that Binance cannot conduct any regulated activity. The regulator has issued a warning to the consumers about this platform.
Japan also issued a similar warning to Binance, saying it is providing crypto exchange services to Japanese customers without registration. Crypto assets under management also declined to around $38 billion (about Rs 2,82,120 crore) in the latest week. The AUM stood at $65 billion (approximately Rs 4,82,620 crore) at the end of April.