Once Again, Institutional Players Buy the Crypto Dip

As the global crypto market moved towards a bearish correction last week, institutional investors appeared to use the opportunity to buy the dip for major wins.

Last week’s plunge in prices came after an intense rally which had pushed most coins to new all time highs during which we saw Bitcoin break past the $68,000 level and Ether past $4,400. But the news does not all seem grim, as inflows remained strong.

Data from the digital asset management firm CoinShares revealed that big investors were seemingly unfazed by the collapse in prices that occurred across the crypto market as a whole. This was noted as crypto products and funds posting impressive inflows totaling around $154 million. Data also showed that Bitcoin led the largest chunk of this amount, totaling $114.4 million.

This clearly shows that big time investors are not concerned with the volatility of the crypto market, a property that has long been viewed as the crypto market’s achilles heel.

And this is not the first time this happens either. Back in October, a series of harsh sell-offs triggered by Fear, Uncertainty, and Doubt (FUD) resulted in a slight pullback in crypto prices which at the time caused coins like Bitcoin to drop 14% while others like Ether fell 12%. At that instance, stoking FUD pressures was a notice from the Chinese which revealed regulators would seek to end “illegal activity” in cryptocurrency markets. This ended up being a golden opportunity for banks and financial institutions that saw a staggering $95 million worth of inflows as prices fell. Despite the fact that Bitcoin and Ether Investment products led the majority of the inflows at the time, institutions also appeared to be voracious for altcoin products like Polkadot, Solana, and Cardano which all saw marked increases in their inflows as well.

It is clear that despite the dip in prices, bullish institutional sentiment surrounding crypto has not wavered.

Each week, we compile the most important stories to shed light on crypto investment opportunities. Sign up for our newsletter and stay up to date on the latest happenings in the market!

Next
Crypto.com Surges Forward And Adidas Partners With Coinbase