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Investors Going Pessimistic
Sentiment among institutional investors has been declining for some time. This is consistent with the market trend, which has seen bitcoin drop under $22,000 and the overall market capitalization of all cryptocurrencies eventually cross back under $1 trillion. As a result, institutional investors’ outlook on the market has grown more pessimistic. The results for the previous week are in, and the outflows from other digital assets demonstrate that major investors are not placing bets on bitcoin.
Institutional investors have been preparing to sell their bitcoin holdings for a few weeks now. These investors had taken their money out of the digital asset during the previous two weeks. Despite the fact that by no means were these volumes the highest ever, they still suggest a dismal future for institutional investing. The market for bitcoin had seen outflows for the third week in a row. The digital asset has experienced a significant drop in investor bearishness, and another week of outflows totaling 15 million USD was reported. It is $6 million less than the outflows saw the week before.
The Continous Outflows
Over this period, the bearish tendency has also extended to bitcoin shorting. The short bitcoin only witnessed inflows of 0.2 million USD, as opposed to the preceding week’s 2.6 million USD total inflows. This demonstrates that institutional investors are not just reducing their exposure to long holdings but also to short positions. This might mean that they anticipate a temporary lull in market values. The digital investment goods sector was another area that saw outflows. The outflows were 17 USD million the week before. They came to a total of 9 billion USD last week.
For a time now, institutional investors have not been fond with Ethereum. For the longest time, the cryptocurrency bore the brunt of its bearishness, which resulted in months of continuous outflows. But for the digital asset, things appear to be improving. For this period, $3 million worth of investments were made into Ethereum over the past week. Following the news that the Merge will take place in September, the market mood for the digital asset has once again turned in its favor.
For the second week in a row, only altcoins appeared to be receiving any form of inflows. Even if their quantities weren’t extremely promising, there were nonetheless inflows. Inflows of 0.5 USD were seen in assets like Cardano, perhaps as a result of the increased bullishness in Ethereum. With outflows of 1.4 million USD, Solana did not, however, receive any support from institutional investors. Blockchain stocks had outflows of 1.6 million USD within the same time period, with the majority of them coming from the US, Germany, and Sweden.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
