<![CDATA[<figure class="image"><img src="https://cimg.co/news/124961/330073/liquidity-drain.jpeg" srcset="" width="" class="content-img" alt=""><figcaption>Source: Adobe / Andy Nowack</figcaption></figure>As much as $55 billion in capital exited the crypto market in August, while both trading volumes and volatility remained at suppressed levels, a new report has revealed.According to the report, published by crypto exchange Bitfinex on September 11, the massive outflows came from three major pillars of the crypto market, namely <a href="https://cryptonews.com/coins/bitcoin/">Bitcoin (BTC)</a>, <a href="https://cryptonews.com/coins/ethereum/">Ethereum (ETH)</a> and various stablecoins.The outflows happened as Bitcoin formed its &ldquo;largest red monthly candle&rdquo; since the bottom of the current bearish cycle was reached in November 2022, sending the price down by 11.29% on a monthly basis.<figure class="image"><img src="https://cimg.co/news/124961/330063/realized-value-net-positi.jpg" srcset="https://cimg.co/news/124961/330063/responsive-images/realized-value-net-positi___media_library_original_2130_1164.jpg 2130w, https://cimg.co/news/124961/330063/responsive-images/realized-value-net-positi___media_library_original_1200_656.jpg 1200w, https://cimg.co/news/124961/330063/responsive-images/realized-value-net-positi___media_library_original_900_492.jpg 900w, https://cimg.co/news/124961/330063/responsive-images/realized-value-net-positi___media_library_original_720_393.jpg 720w, https://cimg.co/news/124961/330063/responsive-images/realized-value-net-positi___media_library_original_600_328.jpg 600w, https://cimg.co/news/124961/330063/responsive-images/realized-value-net-positi___media_library_original_300_164.jpg 300w" width="2130" class="content-img" alt=""><figcaption>Source: Bitfinex / Glassnode</figcaption></figure><h2 id="return-of-event-based-volatility">Return of &lsquo;event-based volatility&rsquo;</h2>Despite the overall bearish price action during the month, Bitfinex also said in the report that August has shown that &lsquo;event-based volatility&rsquo; has finally returned to the crypto.<figure class="media"><oembed url="https://twitter.com/bitfinex/status/1701247848371597499"></oembed></figure>The return of event-based volatility is evidenced by the market flash crash on August 17, followed by a price pump on August 29 on the news that digital asset manager <a href="https://cryptonews.com/news/grayscale-crypto-asset-management-firm-wins-lawsuit-against-sec.htm">Grayscale won a lawsuit against the Securities and Exchange Commission</a> (SEC), opening a door to a spot Bitcoin exchange-traded fund (ETF).<figure class="image"><img src="https://cimg.co/news/124961/330062/bitcoin-price-august.jpg" srcset="https://cimg.co/news/124961/330062/responsive-images/bitcoin-price-august___media_library_original_2142_1054.jpg 2142w, https://cimg.co/news/124961/330062/responsive-images/bitcoin-price-august___media_library_original_1200_590.jpg 1200w, https://cimg.co/news/124961/330062/responsive-images/bitcoin-price-august___media_library_original_900_443.jpg 900w, https://cimg.co/news/124961/330062/responsive-images/bitcoin-price-august___media_library_original_720_354.jpg 720w, https://cimg.co/news/124961/330062/responsive-images/bitcoin-price-august___media_library_original_600_295.jpg 600w, https://cimg.co/news/124961/330062/responsive-images/bitcoin-price-august___media_library_original_300_148.jpg 300w" width="2142" class="content-img" alt=""><figcaption>Bitcoin price in August. Source: Bitfinex</figcaption></figure>Notably, Bitcoin derivatives markets also saw increased activity, with for instance Bitcoin open interest (OI) sustaining itself &ldquo;better than almost the entire market,&rdquo; the report said.It added that this is likely due to both institutional interest and &ldquo;wash trading&rdquo; on certain crypto exchanges.&ldquo;Now that crypto derivatives markets are more mature, they can be seen not just as transactional hubs but also crucial barometers, providing insights into market sentiment,&rdquo; Bitfinex said about the development.
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Crypto Market Sees $55 Billion Outflow in August Amid Liquidity Concerns - Bitfinex Report

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