Institutional Outflows From Bitcoin Paints Bearish Picture For Crypto Market

For a long time, institutional investors have been neutral about bitcoin and the entire crypto market. Inflows and outflows have alternated with every passing week, even in the bear markets. Current net flows records indicate that large investors have begun to locate their preferred position on the market, and this is the group of bears.

Bitcoin sees outflows

Bitcoin has been seeing minor inflows over the past month and a half, which was good news for its digital currency despite having not had much impact. The figures from the last week now show that $13 million has been withdrawn.

The bearish sentiment is more evident in short bitcoin, which has now seen its third week of outflows. With the $7.1 million, short bitcoin’s total outflows jumped to $28 millions. This is a bearish trend that shows large investors leaving the market faster than taking sides.

This week, $15.6million was spent on digital assets. Additionally, November was marked by a bearish beginning with outflows of $19 million. Investors don’t seem to be convinced that November will continue its bullish trend.

Crypto total market cap chart from

General bearishness in crypto market | Source: Crypto Total Market cap on

Why Bearishness

Although it is not having the same impact as anticipated, investors have been affected by the FOMC meeting’s outcome. A fourth straight increase in interest rates of 75 basis points showed that Fed officials were not willing to change their hawkish attitude against high inflation rates.

Markets such as crypto will be affected by high interest rates, which, in bear markets, can severely limit their growth. No surprise, the United States was the country that saw the largest outflows in this week’s region since the Fed’s decision.

There were still inflows across the border. Inflows to Switzerland and Germany were $6.8 and $4 million, respectively. Most of these inflows were for altcoins. Ethereum saw inflows of $2.7million, ending its trend of outflows. XRP also followed the trend, with $1.1 million inflows. This marks its third week inflows.

The crypto market took a significant turn since then, so there is a possibility that institutional investors will be more positive about the next week. But, overall crypto market sentiment is still heavily negative. Therefore, no major inflows are to be expected. 

Featured Image from BitIRA. Chart from

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

Get more Crypto News at CFX Magazine