Institutional investor sentiment remains negative as Bitcoin outflows continue
Institutional investor sentiment has been on the rocks for some time now. This follows the market trend with bitcoin falling below $22,000 and the total crypto market cap finally coming back below $1 trillion. With this, institutional investors continue to show a more bearish attitude towards the market. The numbers for last week are in, and the outflows from various digital assets show that big money is not betting on bitcoin.
Institutional investors are abandoning Bitcoin
The exodus from bitcoin by institutional investors has been going on for a couple of weeks now. In the last two previous weeks, these investors had pulled their money out of the digital asset. Now, these volumes were not the largest ever seen by any margin, but they paint a bleak picture for institutional investing going forward.
For the third consecutive week, bitcoin had recorded outflows in the market. Most of the bearish sentiment from investors had fallen on the digital asset, and it recorded another week of outflows totaling $15 million. It is 6 million dollars lower than the exits recorded for the previous week.
The bullish trend has also spread to short bitcoin during this time. Where the short bitcoin had seen inflows of a total of $2.6 million for the previous week, it only saw inflows of $0.2 million. So not only does this show that institutional investors are pulling out of long positions, they are also continuing to reduce their short exposure. This may indicate that they expect market prices to remain subdued for some time after this.
BTC continues to trend low | Source: BTCUSD on TradingView.com
Another part of the market that also saw outflows was the digital investment products. The week before, the output had been 17 million dollars. Last week they came out to a total of 9 billion dollars.
Inflow in unlikely places
Ethereum has not been a favorite among institutional investors for some time now. The altcoin had borne the brunt of its bearishness for the longest time, leading to months of consecutive outflows. However, things seem to be looking up for the digital asset.
The past week saw inflows into Ethereum totaling $3 million for this time. This follows the announcement that the merger will take place in September, turning market sentiment in favor of the digital asset again.
Altcoins seemed to be the only ones to receive any sort of inflow for the past week as well. Although their volumes were not very encouraging, there was still inflow. Assets like Cardano saw inflows of $0.5, presumably following the renewed bullishness in Ethereum. However, Solana saw no favor from institutional investors with outflows of $1.4 million.
With the majority of outflows coming from the US, Germany and Sweden, blockchain stocks recorded outflows of $1.6 million for the same time period.
Featured image from U.S. Gloabl Investors, chart from TradingView.com
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