Cryptocurrencies and Institutional Investors
Despite the bearish mood of the market, cryptocurrencies still arouse increased interest from institutional investors. According to statistics, projects such as Cardano (ADA), Ripple (XRP) and Solana (SOL) are a priority for large investors and various funds.
The situation with the first and most popular cryptocurrency Bitcoin (BTC) looks uncertain. Institutions are showing considerable restraint, both in terms of buying and selling the #1 cryptocurrency. Over the past week, only one case of a more or less large sale of a coin has been noticed. The sale of BTC worth the equivalent of $96.1 million was made on the Kraken exchange.
CoinShares’ Cryptocurrency Product Investment Report shows that over the past week, investments amounted to $9.2 million. Most of the funds were invested in alternative products to the market favorite, which also leads to a decrease in the dominance of Bitcoin.
This picture is observed against the backdrop of a general fall in prices for cryptocurrencies, which, as a result, leads to a decrease in trading volume and the amount of assets under management.
If we consider the regional markets, then Canada, Switzerland, Germany and Brazil, until recently, showed an optimistic mood and overall growth. What can not be said about the US, where the market growth amounted to only a few hundred thousand dollars, associated with short BTC investment products.
Looking at what's been going on with BTC and ETC lately, there's an outflow of $11.1 million and $2.1 respectively. In contrast, short BTC products have generated over $18 million in revenue, confirming evidence of declining interest from institutional investors and betting against BTC.
All of the above is more suitable for a buying strategy among large players. TipRank analysts conducted an analysis regarding sales and concluded that despite the bearish market, only 38% of BTC holders cleared their wallets. And 62% remain optimistic about BTC and in anticipation of the growth of the market, continue to hold BTC, based on the long term.
Despite the bear market, the HOLD BTC strategy is supported by major market players such as Alameda Research, MicroStrategy, Polychain Capital, MetaStable, Galaxy Digital Assets Fun, as well as leading crypto exchanges Binnance, OKX, FTX and BitFinex.
Despite the current market situation, there is also a strong opinion that low prices are an ideal opportunity for investors to enter for the long term.
You can track the rate of cryptocurrencies, trade and earn on the KUNA platform.
CoinShark is not responsible for the content, accuracy, quality, advertising, products, or any other content posted on the site. This article is for informational purposes, and not a proposal for action, prepared on the basis of KUNA materials and information from open sources. Financial markets are risky and full of risks. Investing in cryptocurrencies can lead to losses. Users should do their own research and analysis before taking any action.