Bitcoin , Ethereum
Bitcoin and Ethereum are drifting away from large funds. Old cryptocurrency wallets are buying, fund managers are seeing a decline in the value of assets, a very bearish sentiment. When will prices stabilize?
A large outflow of Bitcoin from the Funds
The weekly report from CoinShares shows the next outflow of digital assets from institutional wallets. The biggest sale took place in all bitcoin funds.
Fund managers last week continued to close their positions and take profits from cryptocurrency holdings, which resulted in another large supply in the market. This also translates into the current price of Bitcoin. Funds that were exclusively dedicated to investing in BTC saw a sixth week of outflow from their portfolios.
Last week alone, a total of $ 79 million was received from digital asset products for investment. This is the third consecutive weekly decline and the longest payout period since 2018. Bitcoin (BTC) was paid the most, followed by Ethereum (ETH).
Since the beginning of 2021, Bitcoin alone has generated 4.1 billion. USD impact and ether products accumulated a total of USD 992 million.
The situation is completely different with investment products that contain many digital assets (cryptocurrency basket). These products coped well with last week's declines and recorded a positive balance of inflows of $ 10 million. The data show that these funds have accumulated 351 million in total since the beginning of 2021. usd.
Although it may seem that the low price of the main cryptocurrencies is an incentive to buy, the data shows a decrease in institutional involvement. This does not mean that there is no interest on their part. It is still very large, but the managers are still watching the very large decline in the value of assets and are waiting for prices to stabilize.
Bitcoin has dropped 50% to below $ 33,000 compared to its peak in May. The total value of all cryptocurrency assets fell below $ 1.4 trillion, when it was close to $ 2.8 trillion in May.
Old wallets are buying!
The on-chain indicator watching crypto wallets shows promising signals. "Old" wallet holders buy more Bitcoin at the expense of "new" wallets. Long-term players believe in the strength of Bitcoin in the future and accumulate by taking advantage of the promotional price. New adepts of the cryptocurrency market have partially realized profits, others who have just bought are sitting in losing positions or partially liquidating them, realizing a loss.
The market is bearish, the sentiment towards purchases has dropped significantly, institutions are waiting for the decline to stop, there is a festival of bad market news from governments and regulators.
Will we keep the price of USD 30,000 and from this point on we will start the next rally up when we finish the declines and how long may consolidation take before the next increases - such questions are currently filled with forums / internet groups. The market once again showed its brutality and lack of any sentiment towards investors. The law of supply and demand has always ruled the markets and also in this case proves that you need a lot of humility to enter the market, and hasty enthusiasm is not the domain of a good investor.
