Low Bitcoin Prices Trigger Inflows, But Investor Sentiment Remains Weak
June 23 2022 - 1:00PM
NEWSBTC
Institutional investors’ reactions to the bitcoin price crash have
been quite similar to that of retail investors. After weeks of
outflows, the tides have begun to change, largely credited to the
low prices that offer a chance to get into the digital asset before
a recovery. The past week saw inflows for the digital asset,
although other assets tell a different story. Bitcoin Sentiment
Recovers Bitcoin sentiment had declined far into the negative
following the price crash of last week. With the digital asset
reaching as low as $17,600, it triggered massive sell-offs across
the space. However, not everyone in the space had seen the
declining prices as a signal to sell. 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. This had turned for the better last week when the
outflow trend had been canceled and money began to flow into the
cryptocurrency. Related Reading | Bitcoin Miner
Liquidations Threaten Bitcoin’s Recovery The leading cryptocurrency
had benefitted the most from this turn in investor sentiment as its
inflows came out to $28 million for the week. Now, this is not
exactly an impressive figure when it comes to inflows for bitcoin.
However, it is important due to not only the market sentiment but
the fact outflows had characterized the market for the previous
week. It brings the month-to-date inflows for bitcoin to a total of
$46 million. Nevertheless, the short bitcoin had gone the
other day. This asset saw record outflows for the past week. With a
total of $5.8 million, short bitcoin embodied the negative
sentiment felt throughout the market recently, coming after
reaching a new all-time high of $64 million just at the beginning
of the week. BTC begins another decline trend | Source: BTCUSD on
TradingView.com Outflows Rock The Rest It would seem that bitcoin
would be one of the solitary beneficiaries of the inflow trend for
the past week. For the rest of the market, the sell-off trend had
taken a stronghold and digital asset investment had seen inflows of
$39 million. This brings the total assets under management to $36
billion. It is now sitting at its lowest point in more than a year,
accounting for a 59% decline in the last six months alone. However,
net flows remain positive at $403 million on a year-to-date basis.
Related Reading | By The Numbers: The Worst Bitcoin Bear
Markets Ever Ethereum is yet to be free from its bearish hold as
outflows remain the order of the date. For the last week alone,
Ethereum outflows had reached $70 million. The second-largest
cryptocurrency by market cap has now seen 11 straight weeks of
outflows with no reprieve in sight. Its year-to-date outflows now
sit at a massive $459 million. Multi-asset investment
products and Solana would, however, go the way of bitcoin for last
week. Both these asset classes maintain inflow trends stubbornly.
Inflows for multi-asset investment products came out to $9 million
while Solana saw inflows of $0.7 million, presumably from investors
who are moving out of competitor, Ethereum, due to fears that the
Merge would not be taking place according to schedule. The
crypto market has lost more than $100 billion since last week. It
is currently sitting at $892.6 billion at the time of this writing.
Featured image from US News Money, chart from TradingView.com
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