Low Bitcoin prices spark inflows, but investor sentiment remains weak

Institutional investors reacted to the Bitcoin price crash very similarly to retail investors. After weeks of outflows, the tide is starting to change, largely thanks to low prices providing an opportunity to get into the digital asset ahead of a recovery. The past week has seen an inflow of digital assets, although other assets tell a different story.

Bitcoin sentiment recovers

bitcoin Sentiment has dropped sharply to negative after last week’s price slump. It sparked a massive sell-off across the space as the digital asset traded as low as $17,600. Not everyone in the space, however, sees falling prices as a sell signal. For some, it offers a unique opportunity to get some “cheap” bitcoin, as institutional investors see it.

Bitcoin outflows have been increasing over the last week due to lacklustre market momentum. Things took a turn for the better last week when the outflow trend was cancelled and money started flowing into cryptocurrencies.

Related reading | Bitcoin Miner Liquidation Threatens Bitcoin’s Recovery

The leading cryptocurrency has benefited the most from this shift in investor sentiment as its inflows hit $28 million this week. Now, that’s not an impressive number in terms of Bitcoin inflows.However, this is important, not only because of market sentiment, but also because of the facts Outflows characterised the market in the previous week. It brings the total month-to-date bitcoin inflows to $46 million.

Nonetheless, Bitcoin bears have disappeared the other day. The asset has seen record outflows over the past week. After hitting an all-time high of $64 million at the start of the week, Bitcoin bears totaling $5.8 million exemplify the recent negative sentiment across the market.

BTC begins another decline trend | Source: BTCUSD on TradingView.com

exodus rock the rest

It seems that Bitcoin will be one of the only beneficiaries of the inflow trend over the past week. For the rest of the market, a sell-off trend took hold, with $39 million in digital asset investments. This brings total assets under management to $36 billion. It is now at its lowest point in more than a year, down 59% in the past six months alone. However, year-to-date net flows remained positive at $403 million.

Related reading | The Numbers: The Worst Bitcoin Bear Market Ever

Ethereum has yet to shake off its bearish holdings, as outflows are still dated. In the last week alone, Ethereum has seen $70 million in outflows. The second-largest cryptocurrency by market capitalization has now seen its 11th straight week of outflows with no signs of abating in sight. Its year-to-date outflows now stand at $459 million.

However, multi-asset investment products and Solana will go the way of Bitcoin last week. Both asset classes are stubbornly maintaining inflow trends. Multi-asset investment products saw inflows of $9 million, while Solana saw inflows of $700,000, likely due to investors pulling out of rival ethereum due to concerns that the merger would not go as planned.

The crypto market has lost more than $100 billion since last week. At the time of writing, it currently has a market cap of $892.6 billion.

Featured image from US News Money, chart from TradingView.com

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