# Report: Crypto market outflows hit $55 billion in August

By [AEEC](https://paragraph.com/@aeec) · 2023-09-16

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A report released by crypto exchange Bitfinex showed that capital outflows from the crypto industry reached $55 billion in August. The analysis is based on the Total Realized Value metric, which measures the realized capital of Bitcoin and Ethereum, as well as the combined supply of the top five stablecoins USDT, USDC, BUSD, DAI, and TUSD. Bitfinex said that the outflow of funds not only affected Bitcoin, but also affected the liquidity of Ethereum and stablecoins.

The analysis also points to the return of so-called event-based volatility, whereby individual events can have a greater impact on prices and overall market movements. In August, two isolated events had a significant impact on Bitcoin prices. On August 17, a flash crash caused Bitcoin to plummet more than 11.4%. Likewise, Grayscale Investments won a partial legal battle against the U.S. Securities and Exchange Commission on August 29, causing Bitcoin’s price to jump 7.6% in two hours. Bitfnex said: “We believe that while volatility indicators continue to remain low, isolated events due to tight market liquidity have a greater impact on market movements.”

The analysis noted that Bitcoin’s open interest outperformed the cryptocurrency market due to increased institutional investor interest and wash trades on some exchanges. Trading volume in Ethereum futures and options has dropped significantly compared to previous years, to $14.3 billion per day, which is nearly 50% below the two-year average. Bitfinex wrote: “Movements in the derivatives market, particularly open interest in futures and options, reflect a pattern of low liquidity.”

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*Originally published on [AEEC](https://paragraph.com/@aeec/report-crypto-market-outflows-hit-55-billion-in-august)*