BofA:
Continued signs of fading sell pressure : Over the last 2 weeks, digital assets’ market value fell 4% vs 30% over the prior 4 weeks, DeFi TVL fell 2% vs 32% over the prior 4 weeks and stablecoin exchange net inflows over the last 4 weeks more than offset net outflows over the prior 4 weeks. Idiosyncratic risks related to application illiquidity and bankruptcies have largely played out, but ecosystem mistrust may keep investors on the sidelines, potentially until meaningful regulation addressing investor protections is implemented. Macro risks remain, given that the digital asset ecosystem is an emerging high-growth speculative asset class, and upside is likely capped until rising risks associated with rates, inflation and recession are fully discounted.
Weekly Flows : BTC exchange net outflows over the last 4 weeks were 23x larger than over the prior 4 weeks, tight supply with 65% of tokens in circulation last moved over 1 year ago and dissipating miner sell pressure indicate investors/miners are increasingly HODLing (bullish) . ETH exchange net inflows for 7 of the last 8 weeks and underperformance while the NUPL ratio remains negative signal that sentiment remains bearish, but decelerating exchange net inflows over the last 4 weeks indicate that sell pressure may be beginning to fade, despite concerns around the Merge and future Layer 1 dominance as alternatives emerge (neutral) . Top 4 stablecoin exchange net inflows over the last 4 weeks were 2x larger than net outflows over the prior 4 weeks, indicating that investors may be beginning to move off the sidelines (bullish) .
