Institutional selling of crypto reaches longest streak since Feb 2018
Over the past couple of weeks, the crypto markets have been under pressure. At the same time, the digital assets market has been in a continuous bear market. But, the biggest issue is not the bear market, but rather the fact that institutional investors are continuously selling their crypto holdings.
According to a CoinMarketCap report published on Wednesday, the total cryptocurrency market capitalization has reached $208 billion. This is the longest streak for cryptocurrency market capitalization since February 2018, when the total market cap increased from $207 billion to $212 billion.
The longest streak of institutional crypto selling in history is currently in effect as of today. The streak is now at 81 days, which is a major change from the previous streak of five days at the beginning of May 2018.. Read more about ethereum price and let us know what you think.
Institutional managers continued to post gains in their investments in cryptocurrencies, with bitcoin (BTC) funds recording their sixth consecutive weekly outflow, according to CoinShares.
Last week, outflows from digital asset investment products totaled $79 million, marking the third consecutive weekly decline and the longest period of outflows since February 2018. Bitcon funds saw an outflow of $89 million, while Ethereum (ETH) funds saw a decrease of $1.9 million.
Last year, bitcoin-based investment products generated net inflows of more than $4.1 billion. Ether products, meanwhile, have raised $992 million since the start of 2021.
Multi-asset investment products containing a basket of cryptocurrencies broke out of the downtrend last week and posted inflows of $10 million. Inflows into these funds totaled $351 million this year, according to the data.
Related: Ethereum investment products record weekly outflows – CoinShares
Institutional purchases of cryptocurrencies have taken a hit in recent weeks, with portfolio managers seeing a huge drop in assets. Bitcoin is currently below $33,000, down 50% from its peak in May. The combined market value of all cryptocurrencies fell below $1.4 trillion on Monday, nearly doubling from last month’s peak.
While blockchain indicators appear to be showing favorable signs of a bottom – namely bitcoin redemption by long-term holders at the expense of new wallets – market sentiment remains predominantly bearish due to negative headlines. China’s ban on bitcoin mining, a worrying death cross for bitcoin and Grayscale’s giant BTC unlock in July are just some of the headlines worsening investor sentiment.It’s been a long time since institutional investors have been buying crypto. We’ve seen news reports of the largest US investment funds shutting down their crypto operations. We’ve seen news of it being banned in some Chinese exchanges. And we’ve seen news of it being banned in South Korea.. Read more about ethereum news and let us know what you think.