For some time, institutional investor sentiment is on the decline. This is in line with the current market trend, where bitcoin fell below $22,000 and crypto’s total market cap fell below $1 trillion. Institutional investors are continuing to be more cautious about the market. These numbers show that large money has not been betting on Bitcoin.
Bitcoin Exit for Institutional Investors
A few weeks have passed since the exit of institutional investors from bitcoin. These investors had pulled their funds out of bitcoin in the past two weeks. Although these volume numbers were not among the most significant, they do paint a grim future for institutional investing.
The market saw outflows record for the third week straight. The digital asset had seen most of the investor bearish sentiment fall, with another week of outflows totaling $15 million. The outflows for this week are $6 million higher than those of the preceding week.
Over the past week, short bitcoin has been affected by this bullish trend. While the bitcoin short had experienced inflows totaling $2.6million for the previous week, the inflows to the currency were only $0.2million. Not only is this a sign that institutional investors have begun to withdraw from long positions but they also continue to decrease their short exposure. They could be indicating that they anticipate market prices staying muted for some time after.
Source: BTCUSD tradingview.com| Source: BTCUSD on TradingView.com
Digital investment products were another area that saw an outflow. The previous week’s outflows totaled $17 millions. The outflows totalled $9 billion for the week.
Inflows in Unusual Locations
Institutional investors have not liked Ethereum for some time now. Altcoin was the most affected by its bearishness, leading to several months of outflows. Things are looking good for this digital asset.
Inflows into Ethereum reached $3 million in the last week. The announcement of September’s Merge, which boosted market sentiment once again in favor to the digital asset, is the reason for this inflow.
Altcoins appeared to have been the only one receiving inflows during last week. Even though their volumes were not encouraging, inflows still occurred. Cardano assets saw $0.5 inflows, presumably due to the increased bullishness for Ethereum. Institutional investors did not favor Solana with outflows in excess of $1.4million.
Blockchain equities saw outflows in the range of $1.6million, with the largest outflows from Sweden, Germany and the US.
Featured Image from U.S. Gloabl Investors. Chart from TradingView.com
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