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- The co-founders of Glassnode, a blockchain analytics firm, highlighted that institutional investors are gobbling up Bitcoin as the asset class continues to show weakness with each passing day.
- The co-founders noted that the venture capitalists (VCs) continue to invest in the crypto space despite a bleak macroeconomic backdrop.
- At the time of writing, Bitcoin was trading at $23,975.60, experiencing a 12.69% decrease in the past 24 hours.
Popular blockchain analytics firm Glassnode’s co-founders highlighted that institutional investors are heavily investing in Bitcoin. While Bitcoin reached its 12-month lowest and 2022-low, $23,975.60, down 12.69% in the past 24 hours.
Jan Happel and Yann Allemann, the glassnode co-founders, noted in the firm’s latest newsletter that weekly crypto inflows reveal that institutional investors are loading up BTC while it continues to fall down.
The co-founders further highlight that the demand for Bitcoin exposure in traditional markets has intensified. Last week the capital flows almost doubled after Bitcoin’s $69 million inflow noted recorded in May 30th, this is because of the fact that institutional investors purchased into weakness at a discount.
The Glassnode co-founders also revealed that while the leading cryptocurrency by market cap might be experiencing weaker demand from long-term holders in addition to the selling pressure from short-term holders, it is still faring better than altcoins considering the on-going market sentiment. As investors search for a safe spot amidst the ongoing fear-induced market, Bitcoin has surpassed altcoins.
The co-founders also revealed that the venture capitalists (VCs) are still investing their capital into the crypto space even though there seems to be a bleak macroeconomic backdrop.
The newsletter noted that a similar demand was seen in the VC market with year-to-date capital raised is at 63% of 2020($19.7 billion vs. $31.2 billion). The increased VC interest has led to the narrative of Bitcoin and crypto as an alternative risk-on investment class amid the dwindling economic growth. This is also having an impact on the highly valued earnings of the S&P 500 and Nasdaq.
The co-founders also stated that it is interesting to note that the BTC price is acting like a tech stock’s price, its unique feature of underlying structure of an incorruptible, limited asset that is accessible for everyone “is a fundamental diversifier for any portfolio and institutional investors seem increasingly aware of this.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
