Bitcoin Outflows Reach $21 Million as Institutional Investors Interest Dwindles
August 17, 2022 at 5:00 pm
by Adam Robertson
The interest of institutional investors in bitcoin has fluctuated over the past month. Due to the various phases of the market’s bull and bear cycles, investors’ sentiment has changed. For the past week, the investors have still managed to win back some of their losses. Meanwhile, the digital asset still managed to hold above $20,000 during this period.
Bitcoin Outflows Increase
According to a report released by CoinShares, institutional investors are showing a unique view of how the crypto market is currently viewed. After seeing a relatively strong month of inflows in July, the trend has reversed as weekly outflows have increased significantly.
For last week, they reported the total outflows for bitcoin at $21 million, the largest amount on a month-to-date basis. That is the second week in a row that bitcoin has experienced outflows, with the total taking in around $29 million this month.
In addition to Bitcoin, other assets also experienced outflows during the week. For instance, digital investment products saw outflows of $17 million. This move suggests that institutional investors are still negative about the cryptocurrency market.
Bitcoin (BTC) Signals an Upcoming Rise
After a slightly positive move in the market today, Bitcoin is expected to reverse and trade below the $24,200 resistance level. It is also likely to test the 9-day moving average. During today’s session, the sellers stepped in and pushed it lower to reach its lowest price of the day at $23,668.
If this coin continues to move lower, the support level at $23,000 will likely act as the initial support. This level could also serve as the primary support for Bitcoin, which could fall to the $17,000, $21,000, and $19,000 support levels. On the other hand, if BTC crosses the channel and breaks above the 9-day moving average, it could reach the $30,000, $32,000, and $28,000 resistance levels.
The price of Bitcoin is currently hovering around $23,800, looking at the 4-Hour chart. It could take some time to break above the 21-day and 9-day moving averages. However, given the strength of the bulls, they could reach the $25,000 and above resistance levels.
The support level of $23,000 is also likely to act as the initial support. If the market continues to move lower, the Bitcoin price might eventually fall to the channel’s lower boundary. This level could be triggered by the increasing pressure from the bears and the relative strength index falling below 50.
Institutional Investors Aren’t Completely Bearish
Although digital investment products and bitcoin experienced outflows, other assets experienced minor inflows during the week. Despite the lackluster performance of these asset classes, short bitcoin managed to attract over $2.6 million in inflow.
Notably, blockchain equities also experienced an $8 million inflow during the past six months. That is a positive sign for this asset class, as it shows that investors are still willing to put money into it despite the recent slowdown in its growth. Year-to-date, the total amount of money invested in this asset class is only $15.50 million.
Although altcoins experienced inflows, this was not the case for all of them. For instance, Uniswap was the only notable performer on the list with an impressive $100,000 inflow of $3.9 million total altcoin inflows. That shows that the amount of money invested in these asset classes has slowed.
Although the inflows spread all through Europe, it is also important to note that most outflows were from South and North American exchanges. That goes to show that investors in the US are more pessimistic than their counterparts in other regions.