Small and retail investors are not the only ones being badly hit by the bitcoin crash. Institutional investors are also feeling the impact of the fall in the market. This has turned on institutional investors as the inflows were stalled since last week. Outflows from crypto and blockchain-related investments grew steadily during the weeks, totaling over $100 in total. million.
institutional investors stay away
Institutional outflows have been a concern for crypto investors for the past week, but by no means surprising. With the emergence of ‘crypto winter’, this has signaled that the bear market is in full swing. Thus, investors are forced to react accordingly.
The outflow had climbed over the past week, taking the total to $102 million. This culminates in a long-running outflow trend that has been inhabited by most altcoins. However, this time around, Bitcoin has been included in the trend.
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The leading cryptocurrency saw a total outflow of $57 million last week alone. This was the case in short-term bitcoin investment products, in which outflows were also recorded. For Bitcoin, these weekly outflows bring its month-to-date outflows to $91 million. Short-term bitcoin investment products are now showing a total assets under management (AUM) of only $55 million, compared to $27 billion for its long-term bitcoin investment products.
Total market cap drops below $1 trillion | Source: Crypto Total Market Cap on TradingView.com
All crypto outflows
Ethereum has been recording consecutive weeks of outflows over the past several months and this past week was no different. The second largest cryptocurrency by market cap saw an outflow of $41 million over the past week. This brought its year-on-year outflow to $387 million, which is now only 4.4% of the total crypto-assets under management.
Blockchain quidities have also joined the league of outflows, with a total of $5 million in the past week. As well as multi-asset investment products that saw an outflow of $4.7 million. Most of the outflows recorded for the past week have been from the US, generating over $98 million in outflows. Their European counterparts recorded an outflow of only $2 million for the same time period.
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This shows that investors have a general sentiment towards the crypto market, irrespective of the route they have invested in. The bear market is expected to last for at least one more year and as such, investors have started planning accordingly.
The crypto market cap has now fallen below $1 trillion for the first time since January 2021. With sentiment turning negative, there is no sign of recovery or relief for investors.
Featured image from The Financial Express, chart from TradingView.com
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