Market Downtrend Triggers Bitcoin Influx From Institutional Investors


The market remains in disarray as the price of bitcoin has now fallen to the low $30,000. This was preceded by declining confidence in the market, which translated into less inflows/more outflows in recent weeks. With the price now at its lowest, institutional sentiment towards the digital asset has shifted this year, resulting in significant inflows into the digital asset for the first time in weeks.

$45 million flows into Bitcoin

Bitcoin has now seen inflow after a few weeks of outflow† The past week has turned out well for the pioneer cryptocurrency, which saw an influx of up to $45 million. It is a complete turnaround on the part of institutional investors who have taken money out of the digital asset to presumably put into their altcoin portfolios.

Related literature | Bitcoin exchange influx peaks in three months as the market braces for more downside

Of course, these institutional investors had backed off when indicators pointed to 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 the same trend, riding the wave to the second largest weekly influx on record. The past week saw a total flow of $4 million in Short Bitcoin, which has now taken its total assets under management (AuM) to a new high of $45 million.

BTC Struggling to Find Support Above $31,000 | Source: BTCUSD on TradingView.com

Other digital asset investment products were not left out of the abundance inflows. This time around, a total of $40 million flowed into digital asset investment products in a surprising turnaround.

However, altcoins were not left out in this, although the outflow was more dominant last week. However, Solana would break the mold in this regard to be the only altcoin to register 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 exit the digital asset in the one-week period. So far, 0.8% of Ethereum’s total assets under management have exited the digital asset as annual outflows have now reached $207 million.

Related literature | Bitcoin Price Crashes Below $30K as Markets Show Signs of Paranoia

Inflows and outflows remained inconsistent across market regions. The CoinShares reports show that investment products in the North American markets had raised $66 million. On the other side of the pond in Europe, outflows dominated with a total of $26 million leaving digital asset investment products in the region.

Nevertheless, the new trend of inflows into assets like Bitcoin and Solana proves that institutional investment had come out of the woods to take advantage of the price weakness that had been exhibited in the market. This price weakness continues with bitcoin still struggling to reach a support level above the $31,000 price range.

Featured image from Investopedia, chart from TradingView.com

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