Institutional Investors’ Outflow from Bitcoin Hits 11-Month High as Market Stagnates

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Last Updated on 4 May 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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As Bitcoin’s price continues to struggle and stagnate, institutional investors seem to be losing interest in the largest cryptocurrency by market capitalization. A weekly digital asset fund flows report shows that outflow of institutional investments from Bitcoin investment instruments has reached the highest level since June 2021.

The report shows that $133 million worth of investment left BTC investment products in the last week. This is not peculiar to Bitcoin, other top digital assets including Ethereum which saw an outflow of $25 million while Solana recorded an outflow of $1.5 in institutional investment outflows.

Digital asset investment products saw outflows totaling US$120m, bringing total outflows in this 4-week run to US$339m. This doesn’t reflect the same bearishness seen at the beginning of this year, although it is close to the US$467m outflows witnessed. Regionally, the outflows were fairly evenly split between The Americas comprising 41% and Europe 59%. Bitcoin saw the majority outflows in what was the largest single week of outflows since June 2021, at US$133m

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Funds flowing into altcoins

In the midst of huge outflows from Bitcoin and other top cryptocurrencies, investments are flowing into some not-so-popular altcoins, top among which is FTX token. A total of $38 million flowed to this token alone within the same period that institutional investors were pulling out of Bitcoin. Terra and Fantom also had inflows of  US $0.39m and US $0.25m respectively within the week.

This may mean that investors are starting to lose interest in Bitcoin and other top assets as their prices continue to move sideways for weeks. Meanwhile, the small caps have suffered the same fate during this period of price stagnation as Bitcoin’s price movement majorly determines the direction of the entire market.

The market continues sideways movement

As it stands, there is no clear path in sight for Bitcoin and by extension the entire crypto market. Some analysts believe Bitcoin will take a dive from here to reach $28,000 while others believe it may be going up from here.

Investors are anxiously waiting to see what happens though, whether further capitulation will drop the price further or a bounce comes in and the market starts another upward move.

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