Outflows rock Bitcoin as institutional investor sentiment begins to turn
Institutional investors’ interest in bitcoin has mainly fluctuated over the past month. As the market has gone through the different phases of bull and bear market, the sentiment of investors has also gone through both positive and negative. In the past week, however, it appears that the latter had finally won out as the outflows had rocked bitcoin, even at a time when the digital asset had done a relatively good job of holding above $20,000.
Bitcoin sees outflows of $21 million
The latest report from CoinShares regarding the investments of institutional investors shows a unique perspective on how big money is looking at the crypto market. After seeing a pretty good month of inflows back in July, the trend has now led to a reversal as bitcoin sees some of the most significant weekly outflows it has seen in recent months.
Bitcoin outflows for last week came to $21 million, the largest on a monthly basis. It’s not the first, however, as this is the second week of consecutive outflows for the digital asset, totaling $29 million in monthly outflows.
Bitcoin wasn’t the only asset to experience outflows for the week. Digital investment products also had outflows of $17 million for the same time period. This is clear that the institutional sentiment is skewed towards the negative when it comes to the crypto market.
BTC falls below $24,000 | Source: BTCUSD on TradingView.com
Institutional investors are not completely bearish
Bitcoin and digital investment products had seen outflows for the week, but that was not the case overall. There are other assets that had inflows, albeit less, for the week. One of these was short bitcoin which recorded inflows of $2.6 million last week.
Blockchain stocks also saw inflows of $8 million for the same time period. This is a positive improvement for this asset class, given that inflows had slowed over the past couple of months, bringing year-to-date inflows to a paltry $15.5 million.
Altcoins were also met with inflows for the week, although this was across a wide range of altcoins. A total of $3.9 million flowed into these altcoins, with Uniswap being the only notable outperformer on the list with inflows of $100,000. This shows how much inflows have also slowed down in these altcoins.
Most inflows came from across the pond in Europe, while the majority of outflows came from North and South American exchanges. So it’s safe to say that sentiment is not consistent across regions. Outflows show that US investors are more bearish compared to their European counterparts.
Featured image from CNBC, chart from TradingView.com
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