The reaction of institutional investors to the collapse in the price of bitcoin was very similar to the reaction of retail investors. After a few weeks of outflows, the flows began to change, mainly due to low prices, which give a chance to get into the digital asset before recovery. The last week saw an influx of digital assets, although other assets say otherwise.
Bitcoin sentiment is recovering
bitcoin Sentiment plummeted to negative after last week’s price crash. When the digital asset hit just $17,600, it triggered massive selloffs around the world. However, not everyone took the decline in prices as a signal to sell. For some, this provided a unique opportunity to get some “cheap” bitcoin, which is what institutional investors are seeing.
The outflow of bitcoins last week increased due to the low dynamics of the market. The situation changed for the better last week when the outflow trend was reversed and money began to flow into the cryptocurrency.
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The leading cryptocurrency has benefited the most from this turnaround in investor sentiment, as its weekly inflows totaled $28 million. This is not exactly an impressive figure when it comes to Bitcoin influx. However, this is important not only because of the mood of the market, but also because the outflow characterized the market in the previous week. This brings the monthly Bitcoin inflow to $46 million.
However, short bitcoin is gone the other day. This asset showed a record outflow over the past week. Short bitcoins totaling $5.8 million represented the negative sentiment that has been felt in the market lately, after hitting a new all-time high of $64 million just earlier in the week.
BTC begins another decline trend | Source: BTCUSD on TradingView.com
Outflows Rock The Rest
It would seem that bitcoin will be one of the only beneficiaries of the influx trend over the past week. For the rest of the market, the sell-off trend has solidified, with digital asset investments seeing an influx of $39 million. Thus, the total amount of assets under management of the company reaches 36 billion dollars. It is currently at its lowest level in more than a year, down 59% in just the last six months. However, net flows remain positive at $403 million YtD.
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Ethereum is not yet free from the bear grip as outflows remain par for the course. In the last week alone, Ethereum outflows have reached $70 million. The second largest cryptocurrency by market capitalization has now experienced 11 straight weeks of outflows without any respite. Its year-to-date outflows are now a whopping $459 million.
However, multi-asset investment products and Solana will follow the path of Bitcoin last week. Both of these asset classes stubbornly support inflow trends. Funding inflows for multi-asset investment products were $9 million, while Solana received $0.7 million inflows, presumably from investors moving away from competitor, Ethereum, due to concerns that the merger will not happen in in accordance with the schedule.
The cryptocurrency market has lost over $100 billion since last week. At the time of this writing, it currently stands at $892.6 billion.
Featured image from US News Money, chart from TradingView.com
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