Saturday, January 28, 2023

Bitcoin Reaches 8% Down, Institutional Investors Rushes To Buy Dip

The latest blanket ban imposed by China on cryptocurrencies sparked FUD, several institutional investors rushed to buy the dip, last week, and the digital assets investment products generated $95 million worth of inflows.

On Monday, CoinShares published a “Digital Asset Fund Flows Weekly” report stating that the surge in buying dip helped “drive a sixth consecutive week of inflows for institutional crypto investment products broadly.”

From September 20 to 24, the $95 million worth of inflow marked 126 percent of weekly inflows. The investment products of Bitcoin and Ethereum led the pack with $50.2 million and $28.9 million worth of inflows, respectively. 

It has been reported that the BTC investment products experienced outflows in 13 of the past 17 weeks, but as September arrived the inflow of the investment products rose in just three weeks.

It is to be noted that the BTC investment products have increased by 234 percent, every week.

Several institutional investors have appeared to be strong supporters of altcoins, and they are still following this trend, with products tracing Solana (SOL), Cardano (DAO), and Polkadot (DOT) posting inflows of $3.9 million, $2.6 million and $2.4 million, respectively. 

The inflows of multi-asset funds reached $6.4 million, a week ago.

On Friday, soon after People’s Bank of China declared all crypto transactions invalid in the country, the price of Bitcoin fall 8 percent along with a wider pullback across the crypto market.

On September 03, the PBoC released its first updated measure refraining the financial institutions and payment firms from offering their services to crypto-related transactions. 

The crypto market has always been affected by the Chinese regulators’ FUD, but it simultaneously has helped in surging the price of the cryptocurrency in the following months.

In 2017, the Chinese government imposed a double ban. It barred crypto exchanges from offering their services and also stopped the citizens from participating in initial coin offerings. Soon after, the price of BTC, which was at the $4000 range, reached its then all-time high position of around $20,000.

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Bitcoin (BTC) $ 22,996.16
Ethereum (ETH) $ 1,586.06
Tether (USDT) $ 1.00
USD Coin (USDC) $ 1.00
BNB (BNB) $ 306.79
XRP (XRP) $ 0.412255
Binance USD (BUSD) $ 1.00
Cardano (ADA) $ 0.385433
Dogecoin (DOGE) $ 0.088765
Polygon (MATIC) $ 1.12