Institutional investors’ reactions to the bitcoin price crash have been quite similar to that of retail investors. The low price of bitcoin has allowed for an opportunity to invest before the market recovers. This is partly why the outflows stopped after weeks. While the digital asset saw an increase in inflows over the past week, there were other assets that tell a different story.
Bitcoin Sentiment Recovery
After the last week’s price crash, bitcoin sentiment was in the red. It caused massive selling across the industry, with the price of the digital asset falling to $17,600. The declining price of bitcoins was not a sign to everyone within the industry. For some, it presented a unique opportunity to get some ‘cheap’ bitcoins which is what is seen across the institutional investors.
Bitcoin’s outflows had been ramping up over the previous week due to the low momentum in the market. The trend towards outflows had halted last week, and the money has begun to flow into crypto.
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This week’s inflows totaled $28 million. The most popular cryptocurrency was the one that benefited the most. This is not a huge amount of bitcoin inflows. This is due to the importance of not just the market sentiment, but also the fact that the last week had seen outflows. This brings bitcoin’s month-to-date total inflows to $46 million.
However, short bitcoin disappeared the previous day. The asset witnessed record-breaking outflows over the week. Short bitcoin saw a record $5.8million in outflows, a result of reaching an all-time high $64 million at the start of the week.
Source: BTCUSD from TradingView.com| Source: BTCUSD on TradingView.com
The rest is rocked by Outflows
Bitcoin would appear to be the only beneficiary of this week’s inflow trends. The market was still in a sell-off mode and the digital asset investing had experienced an increase of $39million. These assets now total $36 billion. The asset is at its lowest point for more than one year. This comes after a 59% decrease in assets under management in just six months. On a 12-month basis, net flows have remained positive at $403million.
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As outflows continue to dominate, Ethereum remains under bearish control. Ethereum’s outflows have surpassed $70 Million in the past week. It is now the second largest cryptocurrency in terms of market cap and has had 11 weeks straight of outflows without any respite. The cryptocurrency’s total outflows for the year are now at $459 million.
Solana, a multi-asset investment product, and Solana, would however go the same way as bitcoin in last week’s market. These asset classes continue to see inflows. Multi-asset products saw an inflow of $9 million. Solana, however, experienced inflows of $0.7million. This is likely to be from investors moving away from Ethereum competitor because they are concerned that the Merge might not take place as planned.
Since last week, the crypto market lost over $100 billion. At the moment, it is at $892.6 million.
Featured Image from US News Money. Chart from TradingView.com
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