How Does Institutional Buying Affect Bitcoin Price Recovery?
As institutional investors seem to have momentarily stopped their buying frenzy, the price of Bitcoin fell below $58,000 in the early morning hours. BTC is trading at $60,344 at this writing.
- Tether (USDT) transfers from Tether Treasury to exchanges have stopped during the last two days, according to analysts, which is why the price has dropped.
- Institutional investors may be putting off their cryptocurrency purchases, as evidenced by the stop in USDT transfers to exchanges, which is probably why the market is now falling.
- Arkham Intelligence, a blockchain analytics tool, was used to monitor this movement.
CoinShares Reports: Crypto Investors Seize Price Dip as Buying Opportunity
According to statistics from CoinShares, investors seem to see the price dip as a purchasing opportunity despite the present drop.
Digital asset investment products saw inflows totaling $176 million as investors saw recent price weakness as a buying opportunity,
Coinshares Head of Research, James Butterfill
AUM (assets under management) for digital investment products now stands at $85 billion, following a correction that erased almost $20 billion earlier in the process. Resurgent cryptocurrency prices, as opposed to new capital inflows, are the main cause of this comeback. Though $176 million in inflows occurred as investors took advantage of the market downturn as a purchasing opportunity, the $10 billion rebound in AuM cannot be explained by this amount alone. Since the value of cryptocurrencies has increased, the majority of the recovery is thought to have occurred due to the appreciation of the current assets stored in these investment programs.
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