Institutional Investor Sentiment Remains Negative As Bitcoin Outflows Continue
Institutional Investor Sentiment
Modified Date:- Published Date:-Categories: Cryptocurrency
InstitutionalInvestor Sentiment Remains Negative As Bitcoin Outflows Continue
Institutionalinvestor sentiment has been on the rocks for some time now. This follows themarket trend with bitcoin falling below $22,000 and the total crypto market capfinally making its way below $1 trillion once more. With this,institutional investors continue to show a more bearish attitude toward themarket. The numbers for last week are in, and the outflows from various digitalassets show that big money is not betting on bitcoin.
InstitutionalInvestors Exit Bitcoin
The exitfrom bitcoin by institutional investors has been a couple of weeks in themaking now. The last two prior weeks had seen these investors pulling theirmoney out of the digital asset. Now, these volumes were not the largest everseen by any margin, but they paint a grim picture for institution investinggoing forward.
The bullishtrend has also spread to short bitcoin over this time. Where the short bitcoinhad seen inflows of a total of $2.6 million for the prior week, it only sawinflows of $0.2 million. So not only does this show that institutionalinvestors are pulling out of long positions, they continue to reduce shortexposure too. This could indicate that they expect the market prices toremain muted for a while after this.
InflowsIn Unlikely Places
Ethereum hasnot been a favorite of institutional investors for a while now. The altcoin hadborne the brunt of its bearishness for the longest time, leading to months ofconsecutive outflows. However, things seem to be looking up for the digitalasset.
Thelast week saw inflows come into Ethereum totaling $3 million for this time.This follows the announcement that the Merge would be happening in September,turning the market sentiment in favor of the digital asset once more.
Altcoinsseemed to be the only ones receiving any sort of inflows for last week too.Although their volumes came out not very encouraging, there were still inflowsnonetheless. Assets like Cardano saw inflows of $0.5, presumably following therenewed bullishness in Ethereum. However, Solana did not see any favor frominstitutional investors with outflows of $1.4 million.
With themajority of outflows coming from the US, Germany, and Sweden, blockchainequities recorded outflows of $1.6 million for the same time period.
Institutional Investor Sentiment Remains Negative for Bitcoin and Cryptocurrencies. As Bitcoin Outflows Continue, it’s important to look at data on outflows to help gauge institutional investor sentiment and whether it is on the rocks or not.