Bitcoin’s crash is not just affecting small- and medium-sized investors. The heat from the crash is also felt by institutional investors. The market crash has made institutional investors run, as the inflows have halted over the past week. Over the past week, outflows from cryptocurrency and other blockchain-related investments increased steadily to more than $100. million.
Institutional Investors Are Not At Home
Although the institutional outflows of last week were concerning for crypto investors, they are not surprising. With the emergence of the ‘crypto winter’, it has signaled that the bear market is in full force. Therefore, investors must react accordingly.
The outflows had increased throughout the week to $102million. The trend of outflows has been longstanding and remained in altcoins. This time, however, bitcoin is being drawn to this trend.
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Outflows of $57 Million were recorded by the pioneer cryptocurrency last week. These outflows were also seen in the short-bitcoin portfolio, which has already experienced some of its own outflows. These weekly bitcoin outflows increase the month’s total outflows by $91 million. Short-term investment products in bitcoin are currently seeing only $55 millions of total assets under administration (AuM), as compared to $27 trillion for longer-term investment products.
A drop in total market capital to below $1 trillion| Source: Crypto Total Market Cap on TradingView.com
Outflows all across crypto
Over the last few months, Ethereum has been experiencing consistent outflows for weeks. This week was no exception. This week, outflows totaled $41 million for the second largest cryptocurrency market capital. Its year-to date outflows now total $387 million. This is only 4.4% of all crypto-assets under management.
The league of outflows also includes blockchain quirks, which saw a total $5 million of outflows in the week. Multi-asset investments products also saw outflows of $4.7 million. Last week’s outflows were dominated by outflows from Americas. They accounted for more than $98 millions. For the same period, their European counterparts recorded only $2 million in outflows.
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This shows the sentiment among investors about the cryptocurrency market, regardless of how they invested. As such investors are beginning to plan.
Since January 2021, the crypto market cap fell below $1 trillion. There is little relief and no signs that investors will see any improvement in sentiment.
Featured Image from The Financial Express. Chart from TradingView.com
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