Market Downtrend Trigger Bitcoin Inflows From Institutional Investors
May 10 2022 - 06:00PM
NEWSBTC
The market continues to be in disarray as the price of bitcoin has
now fallen to the low $30,000s. This had been preceded by declining
faith in the market thus translating to fewer inflows/more outflows
in the last couple of weeks. However, with the price now at the
lowest, it has been this year, institutional sentiment towards the
digital asset has changed and this has resulted in significant
inflows into the digital asset for the first time in weeks. $45
Million Flows Into Bitcoin Bitcoin has now seen inflows following
several weeks of outflows. The past week has proven to be good for
the pioneer cryptocurrency which saw inflows as high as $45
million. It is a complete turnaround from the institutional
investor side which has been pulling money out of the digital asset
to presumably put towards their altcoin portfolios. Related Reading
| Bitcoin Exchange Inflows Hit Three-Month High As Market
Braces For More Downside Naturally, these institutional investors
had been pulling out when indicators had been pointing towards a
bear market, and have now returned to take their share of the pie
with bitcoin trading at low prices. It marks the return of positive
sentiment among these investors. Short Bitcoin also followed this
same trend and has ridden the wave into its second-largest weekly
inflows on record. The past week saw $4 million total flow into
Short Bitcoin which has now brought its total asset under
management (AuM) to a new high of $45 million. BTC struggles to
find support above $31,000 | Source: BTCUSD on TradingView.com
Other digital asset investment products were not left out of the
inflow galore. This time around, there was a total of $40 million
flowing into digital asset investment products in a surprising
turnaround. Altcoins were not left out of this though even
though outflows were more dominant for last week. However, Solana
would break away from the mold in this regard to be the only
altcoin that recorded any significant inflows with $1.9 million
flowing into the Digital asset. As for other altcoins, the
outflows continue as negative sentiment continues to rock the
cryptocurrency. It saw $12.5 million leave the digital asset in the
one-week period. So far, 0.8% of the total Ethereum AuM has left
the digital asset as its year-to-date outflows have now reached
$207 million. Related Reading | Bitcoin Price Crashes Below
$30K As Markets Show Signs Of Paranoia The inflows and outflows
remained inconsistent across various market regions. The CoinShares
reports show that investment products in the North American markets
had recorded $66 million. Across the pond in Europe, outflows
dominated with a total of $26 million leaving digital asset
investment products in the region. Nonetheless, the new trend of
inflows coming into assets like Bitcoin and Solana prove that
institutional investments had come out of the woodwork to take
advantage of the price weakness that had been displayed in the
market. This price weakness continues with bitcoin still struggling
to establish a support level above the $31,000 price range.
Featured image from Investopedia, chart from TradingView.com
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