In January, the price of most cryptocurrencies touched their lows, like the famous BTC falling over 20 percent and ETH falling over 30 percent from all-time highs recorded in November of last year. Bitcoin’s share of total assets held in cryptocurrency investment products increased to 69.5 percent during the downfall.
According to CryptoCompare’s latest Digital Asset Management Review, macro sentiment around risk-assets has been the leading narrative in the markets, as investors expect a significant pullback in quantitative easing from central banks following a record 7 percent CPI inflation figure coming out of the United States in December 2021.
The report also shows:
- The value of cryptocurrency investment products under management fell 25.1 percent, from $58.6 billion to $43.9 billion.
- The average daily trading volume dropped 14.5 percent to $481 million.
- The value of bitcoin-related assets under management has dropped 23.3 percent to $29.9 billion.
- Ethereum products and products backed by other assets fell by 29.2 percent and 29.9 percent.
- In January, BTC products increased their market share from 67.8 percent to 69.5 percent.
The third week of December was recorded as the first outflows of digital asset products since August, with the trend continuing into January. Bitcoin-related products have seen the most outflows, with a weekly average of $49.3 million.
