Institutional Investors Shift Focus On These Altcoins, Sell off Bitcoin and Ethereum
Bitcoin price has reached a crucial resistance level of around $28k as traders await tomorrow’s Federal interest rates. With over $126 million liquidated in the past 24 hours, Bitcoin’s volatility is expected to increase before and after the FOMC statement. The Bitcoin market continues to enjoy a bullish sentiment fueled by the increased fear of a global banking crisis.
The pressure on Jerome Powell to save the banking industry and reduce the dollar inflation to 2 percent has fueled the recent Bitcoin pump. Moreover, Bitcoin has annual inflation of less than 2 percent, and next year’s halving event will reduce the figure much lower. As such, institutional investors and retail traders have gained confidence in stashing more Bitcoins to flee the inflationary fiat market.
Furthermore, Bitcoin price has rallied over 70 percent YTD while the United States Dollar DXY index and the DOW Jones are down 0.41 and 2.69 percent, respectively, in the same timeline.
Closer Look at Cash Flow into Bitcoin And Altcoin Market
A recent report by CoinShares has, however, indicated a rather intriguing phenomenon. Reportedly, Bitcoin recorded a total of $113 million in outflows despite a 17 percent spike during the week. Notably, CoinShares reported that the overall outflow in the Bitcoin market was due to the need for liquidity rather than the negative sentiment.
“In stack contrast to the broader market, Bitcoin remained the focus of negative sentiment, seeing outflows in investment products totaling $113 million last week, with the last six weeks’ outflows totaling $424 million,” CoinShares noted.
Notably, the altcoin market, except Ethereum, which registered an outflow of $13 million last week, generally posted cash inflows of approximately $1.3 million. This is despite the fact that the number of Non-Zero Ethereum addresses just reached an ATH.