Institutional investors have been fairly neutral on both the bitcoin and crypto markets for some time now. This has translated into a mix of inflows and outflows across various digital assets, which alternate with each passing week, even through a bear market. However, the current net inflow records show that these big investors are beginning to find their chosen position in the market and it is in the bear camp.
bitcoin sees outflow
Bitcoin was recording modest inflows over the past month and a half, which bodes well for the digital asset despite not having much impact. It’s completely changed now because Last week’s figures show $13 million outflow for the digital asset,
This bearish sentiment has been more prominent in short bitcoin which is now on a third consecutive week of outflows. The $7.1 million short brought the total outflow from bitcoin to $28 million. These outflows suggest that large investors are pulling more from the market than taking one side over the other, developing an overall bearish trend.
Digital asset outflows for the week amounted to $15.6 million during this period. Moreover, it was the beginning of a bearish month in November, which already saw an outflow of $19 million. So even though November has historically been a bullish month for the crypto market, investors can’t believe the same thing will happen this time around.
Crypto market suffers general bearishness | Source: Crypto Total Market cap on TradingView.com
cause of recession
Although it has not had the same impact as expected, the outcome of the FOMC meeting is affecting the behavior of investors in the market to a great extent. An interest rate hike of 75 bps for the fourth time in a row showed the Fed was nowhere close to backtracking from its hardline stance against high inflation rates.
As expected, the impact such high interest rates would have on markets like crypto, especially during a bear market, would limit their ability to grow. It’s also no surprise that the United States led the outflow for the week as the Fed’s decision has the most impact in the region.
Nevertheless, there was still some influx from across the point. Switzerland and Germany both saw inflows of $6.8 million and $4 million respectively, most of which were focused on altcoins. Ethereum finally ended its outflow trend with an inflow of $2.7 million. XRP followed the trend with an inflow of $1.1 million, marking its third week of inflow.
Since that time, the crypto market has taken a turn, so expect a change in institutional investor sentiment in the coming week. However, the general crypto market sentiment remains largely skewed in the negative, meaning no significant inflows should be expected.
Featured image from BitIRA, chart from TradingView.com
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