Institutional Investors Exit Market As Crypto Declines, New Report Reveals


After the cryptocurrency market failed to return to its former glory, institutional investors are fleeing in droves. According to multiple sources, the market has seen significant outflows of institutional cash in recent weeks. Coinshares made the conversation surroundings available a few days ago in a recent update.

Investors leave the market

to me Coinshares’ The most recent figures, the total amount of funds removed from the market due to the withdrawals of institutional investors in the month of more than 339 million dollars. Although the market witnessed a similar movement at the beginning of the year, the study indicated that this movement did not reverse it. The amount was approximately $467 million at the beginning of the year, according to Coinshares, indicating a difference of $128 million.

According to the report, Bitcoin funds made up the majority of recorded withdrawals. Since $133 million was seen in June last year, this figure reflects the largest bitcoin fund outflows in a week.

According to the paper, pinpointing the exact root of the problem is difficult. However, much has been said about the market’s decline, while others have speculated about the US Federal Reserve’s report.

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BTC/USD trades at $39k. Source: TradingView

Related reading | Time vs. Price: Why This Bitcoin Correction Was the Most Painful So Far

More drops in the market

According to the report, institutional investors who invested in Ethereum were not left out, as they withdrew a total of $25 million from the fund last week. This means that since the beginning of the year, Ethereum has only seen outflows in the past five weeks. The total amount of money he spent is $194 million. Although institutional investors have withdrawn from most altcoins, funds with a broad portfolio of assets have seen little outflows to deviate from the trend.

Total market capitalization is at its lowest level since mid-March. Over the past 24 hours, the market has lost 12% of its value, bringing it to $1.8 trillion.

Bitcoin is also down slightly, trading below $38,000, while Ethereum has been hovering around the $2,800 mark for some time. Most of the cryptocurrencies followed the negative trends of the prominent currencies and lost a large part of their value. On the other hand, NEAR is still going strong, with a 2.7 percent increase in the market in the last 24 hours.

Related reading | Bitcoin Completely Follows The Market Cycle Comparison, What Comes Next For Cryptocurrencies?

Featured image from Pixabay, chart from TradingView.com



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