Market turmoil continues as bitcoin prices fall to low $30,000s. The decline in faith in bitcoin had preceded this, which translated to less inflows and more outflows over the past few weeks. However, the market is now at its lowest price since this year. Institutional sentiment has changed, and there have been significant inflows to the digital asset.
$45 Million Flows Into Bitcoin
After several weeks of inflows, Bitcoin is now seeing an increase in its capital. This week saw Bitcoin see inflows reaching as high as $45 millions. The institutional investor side, which had been withdrawing money from the digital asset in order to possibly put it towards altcoins portfolios, has now made a total turnaround.
Bitcoin Exchange Inflows Hit Three-Month High As Market Braces For More Downside| Bitcoin Exchange Inflows Hit Three-Month High As Market Braces For More Downside
This is a natural result of institutional investors who had pulled out during bear markets. They are back now to share the bitcoin market at low prices. This is a sign of the positive sentiment returning to these investors.
Short Bitcoin has also been following the same trend, and is now experiencing its second largest weekly inflows. Short Bitcoin has seen $4 million of total inflows over the last week. This brings its total Asset Under Management (AuM), up to $45million.
Source: BTCUSD via TradingView.com| Source: BTCUSD on TradingView.com
The inflows were also available for other digital asset investments products. Surprisingly, $40 million was transferred into digital asset investments products this time.
Altcoins did not get left behind, even though outflows were stronger for the week. Solana is the exception in this case, as it was the only altcoin to see significant inflows. The Digital asset received $1.9 Million.
Altcoins are also experiencing outflows as the negative sentiment that continues to plague the cryptocurrency is still a problem. The digital asset saw $12.5million leave it in one-week. It has seen 0.8% of Ethereum AuM leave the digital asset so far. Year-to-date, outflows total $207 millions.
Bitcoin Price Crashes Below $30K As Markets Show Signs Of Paranoia| Bitcoin Price Crashes Below $30K As Markets Show Signs Of Paranoia
Inflows as well as outflows remain inconsistent between markets. CoinShares data shows that investments products in North American markets had made $66 millions. The European market saw outflows of approximately $26 million, leaving only digital asset investments products.
However, institutional investors have risen to the occasion and are now inflowing into Solana and Bitcoin. The price decline continues, with bitcoin struggling to find a support level at $31,000.
Featured image taken from Investopedia. Chart from TradingView.com