Institutional inflows to bitcoin have been slowing down as the cryptocurrency’s price is still below $40,000 The funds are now flowing into the other space-related digital assets. Most important is the near-one year low outflow rate.
Bitcoin outflows grow
Over the past few weeks, institutional investors have pulled money out of Bitcoin at a faster pace than usual. It is this that has resulted in outflows last week for the digital asset.
Bitcoin had experienced the largest outflows in the last week, with $120 million reported for the week. It was dangerously close at its $133 million record for outflows in a single year, which it set back June 2021.
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However, it wasn’t the only asset that suffered outflows during the week. It was Blockchain equity that was the most resistant to this outflow trend. As institutional investors continue to increase their negative sentiment, it had already seen $27 million.
Ethereum was also a part of the continuing outflow trend. Total outflows of $24 million have been recorded from the digital asset. This brings its total to $194 millions for 2018.
BTC Trending at $38,000| Source: BTCUSD on TradingView.com
The market has seen 4 consecutive weeks of inflows. The market now has a total $339 million outflows in the past four weeks. It also reflects a generally bearish sentiment that is being felt across the market as the Fear & Greed Index had dived into the extreme fear territory.
However, this negative sentiment did not affect every digital asset. FTX Token emerged as the unlucky winner this week, bringing in some of the biggest inflows. With $38 million inflows into its digital asset, the digital asset led the inflow trends.
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The trend continued with large players like Terra and Fantom. These digital assets were not as successful as FTX Token, but still saw inflows. Both had $0.39 and $0.25 millions respectively.
Bitcoin remains a favorite investment option despite inflows. The price is steady between $36,000 and $38,000. The price briefly rose above $39,000 on Wednesday, but then dropped to $38,935 by the time this article was written.
Featured Image from MARCA chart by TradingView.com