Institutional players snap up Bitcoin as prices hit 2-year lows with CoinEdition
© Reuters. Institutional players acquire Bitcoin as prices hit 2-year lows- Institutional investors buy the dip.
- Analysts say now is a good time to get into BTC.
- Bitcoin price may fall lower to reach its average bear market correction level.
Last week saw the highest amount of inflows into cryptocurrency investment products since early March, when $42 million was invested, according to the Digital Asset Fund Flows data published by CoinShares. The firm wrote that the inflows started later in the week after cryptocurrency prices fell due to FTX’s liquidity crisis.
“It suggests that investors see this price weakness as an opportunity, distinguishing between trusted third parties and an inherently untrustworthy system,” the firm added.
Investment flows into products related to Bitcoin (BTC) reached $18.8 million last week, while flows into products that give investors exposure to nearly $2.5 million. $12.6 million flowed into products betting against BTC, suggesting some institutional players are betting against the flagship cryptocurrency.
Some analysts have turned bullish in line with institutional investors. According to Emma Newbery, now is a good time to buy Bitcoin as the price of the flagship crypto has hit a two-year low, but investors need to do so cautiously.
According to Newbery’s recent article, there are chances that other crypto institutions may collapse after FTX. The analyst also warned that current events could trigger a cascading effect on the market. As such, the analyst put the idea of looking more closely at projects in which the Alameda research was invested and steering clear.
“When a crypto institution fails, it has a ripple effect on other platforms and projects. In this case, pay attention to the projects in which Alameda Research has invested heavily. These include (SOL) and 1inch Network (1INCH).”
Similar sentiments were voiced by Pseudonym analyst Rekt Capital, noting that Bitcoin typically tends to “bottom out about a year after its previous Bull Market peak,” and as of now, it’s been a year since 2021’s peak in November.
“If ever there was a time to pay attention to the market to position yourself for maximum return on investment. It’s now,” he added. However, in a follow-up tweet, the analyst added that BTC has retreated 78% so far and still has room to drop “another 35%” to reach its historical average bear market correction level.
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