The CoinShares have published the weekly flow data of crypto assets and it is exciting considering how the crypto market moved last week and how retail reacted. In this short article, we will look into how this flows from different perspectives and dimensions, so we can have a larger view on how and who is taking what moves in the crypto market. So let's get started...
Note: The purpose of this article is to provide publicly available information along with my personal views and perspectives, and not to provide any investment advice. Please do your research before making any crypto investments, and invest what you can afford!
$176 Million Net Inflow Last Week
Let's start with the border picture, once it is clear we will dig deeper. As seen in the picture below, two weeks earlier, we saw a net outflow after a very strong net inflows, which was a market reaction or say a market mover. But considering that dump in the market, many players looked at it as a cheap buying and invested a lot, especially large players while retailers were mostly dumping their coins in panic.
src: CoinShares
As you can see above, the very recent bar is closing in above 0, which means we had a net inflow in the crypto assets, which is close to $176 million. This is an interesting thing, as it showcases the increased stability of the crypto market, considering the net outflow week, it is a nice bounce in the market.
Net Flow: Asset Wise
Now, let's look at this net inflow in an asset manner so it will be easy to determine what portion of this investment is allocated to particular assets. As we can see in the below picture, the largest portion of the inflow went to Ethereum (~$155 million), which is 90%+ of the entire inflow amount. Followed by multi-assets with $18 million and later Bitcoin with a total of $13 million.
src: CoinShares
Here, an interesting thing to focus on is that Binance (BNB) has seen an outflow of $1.2 million and Short Bitcoin had an outflow of $16.2 million. Short Bitcoin is an asset that benefits from a decrease in Bitcoin, it is like putting your money on Bitcoin losing its value, but it is very strong point to consider that many institutions and large player, who participated in shorting Bitcoin have gotten out of their position, which could be an indicator of Bitcoin not going down from here, at least not much!
Net Flow: Region Wise
Above we saw the net flow asset-wise, now let's look at where these massive investments came from.
src: CoinShares
The United States is by far leading the way in this crypto investment with a total contribution of $89 million, followed by Switzerland, Brazil, and Canada. This week's net flow is +$176 million, however looking at this number at the monthly timeframe, flow stands at -$209 million, which mainly came from the dumping from Canada, USA, Germany, and Sweden.
Conclusion
Final conclusion that I draw from this information is that Bitcoin will be stabilizing above $55k, as there is huge buying taking place at that level, and many players showed their interest. And one more thing is that bitcoin shorting has been drastically decreased between this level. So, for me, this $55k-ish range will be critical. And with this strong base, we may see Bitcoin moving further from here.
The current Bitcoin price is $59K, let me know what's the price of Bitcoin while you are reading this article in the comments!
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