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A lot of crypto investors took advantage of the recent spike in bitcoin and booked profits worth $2.09 billion last week, suggesting that there is a belief that the recent spike in the world’s biggest cryptocurrency was only a bearish relief rally.

According to a note by blockchain data provider Glassnode, after an extended period of very negative sentiment, and sustained downwards price action, bitcoin traded high with gusto last week.

“A key question is whether this is a disbelief rally (where everyone doubts the new bull trend), or simply a bearish relief rally in a larger time-frame downtrend," Glassnode said in a note.

During last week, bitcoin opened at weekly lows of $35,326 and reached an intra-day high of $42,388. The digital asset was 2.1% lower at $38,681.45 at around 2.15pm IST on Tuesday, as per CoinGecko.

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After a long period of elevated losses being realized in May to July (see the pink line in chart), over $2 billion in profits were realized on-chain this week (seven-day median). “This suggests there is some portion of the market, which spent their profitable coins, potentially taking exit liquidity," the note said.

Meanwhile, another report by digital asset manager CoinShares showed that crypto investment products witnessed fourth straight week of outflows totalling $19.5 million.

The data suggest that despite the most recent price recovery investors were using recent strength in prices to take profits.

As per CoinShares, since the outflows began, prompted by negative price action in mid-May, outflows have totaled $295 million, representing 1% of the total assets under management (AUM).

“During the 2018 price rout, outflows were far greater, totaling 5% of AUM but occurred over a shorter period of nine weeks rather than the current 12 weeks seen during the current price decline," said CoinShares, which manages crypto assets worth around $3.71 billion.

US-based Grayscale Investments LLC is the biggest digital asset manager in the world with an AUM of around $34 billion, followed by CoinShares.

For the week, bitcoin saw outflows totaling $20 million, its 4th consecutive week and has borne the brunt of the outflows over this price rout in digital assets. Still, inflows year-to-date remained high at $4.1 billion, as per CoinShares.

In the case of ether, the world’s second-biggest cryptocurrency, outflows totaled $9.5 million last week, it’s second consecutive week, although investors have been more forgiving, seeing outflows in only six of the last 12 weeks compared with 10 for bitcoin.

In some positive news, CoinShares highlighted that crypto investment products’ trading volumes rose 173% compared with the previous week.

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