The price of bitcoin has had an eventful start to the month of August, and it doesn’t look like it will be stopping anytime soon. It is mostly the effects of the market turmoil of July when bitcoin prices soared above $24,000 The institutional inflows also have much to say on bitcoin, particularly when it comes down to the size of the money that is interested.
The Bitcoin Inflows are Strong
Inflows of bitcoin for July were actually in a steady upward trend. Inflows to the digital asset totalled $85million for week seven. This was mostly long bitcoin. Short bitcoin declined with $2.6million in outflows during the week.
Inflows were also enjoyed by others in the space, making it the best month so far in the year 2022. The reason is that there was a record $474 million. This almost compensated for the $481 million in outflows which rocked cryptocurrency in June.
BTC Trading at $22,900 Source: BTCUSD On TradingView.com| Source: BTCUSD on TradingView.com
It is now the fifth consecutive week of inflows from all digital investments products. Most of these had been from North America. Canada attracted $67 million, while the United States did not manage to reach $15 million.
Countries like Brazil and Sweden contributed, but to a smaller degree, to inflows across the pond. Solana, Polkadot and $1.5 million respectively saw inflows.
What this means for the market
After the recent recovery of investor sentiment in the past few weeks, the July outflow trend reversed. The recovery was not just felt by retail investors; institutional investors also began to notice the positive changes.
Bitcoin has seen the greatest inflows. Even though Ethereum didn’t make a significant recovery among institutional investors, the other market participant has seen growing confidence.
In essence, the turning point has occurred despite very low trade activity. This bullish sentiment is being reflected by net flows to the exchanges. It is possible the market will see more improvement as investors continue to bring this bullish trend into August.
Featured Image from BitIRA. Chart from TradingView.com
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