Institutional Investors Are Betting on Bitcoin (dollarBTC) and Solana (dollarSOL) Amid Crypto Market Downtrend, Data Shows
Categories: Crypto News US
Institutional investors are betting on the flagship cryptocurrency Bitcoin ($BTC) and on Ethereum rival Solana ($SOL) amid a cryptocurrency market downturn marked by the collapse of Terra’s $LUNA and its UST stablecoin.According to a new report from CoinShares, BTC investment products have seen $45 million in inflows over the last week, as assets under management for these fell to “very similar levels seen during the lows in sentiment seen at the beginning of the year.” According to CoinShares, a spike in investment product trading activity that would typically be seen during “extreme price weakness periods” hasn’t occurred, although the firm notes it’s “too early to tell if this marks the end of the 4-week run on negative sentiment.Ethereum rival Solana, on the other hand, was the “only altcoin to see any measurable inflows” last week, which totaled $1.9 million. According to on-chain analytics firm Glassnode, network profitability defined as a “drop in the percentage of addresses, entities and/or supply in profit,” when BTC was trading at around $33,800 between 60% and 62% of BTC investors were in a state of profit, meaning around 40% were sitting on unrealized losses.This month, Bank of America’s analysts expect an ongoing correlation between BTC and equities to remain in the near future. Moreover, while bitcoin has often been compared to gold, the correlation between the flagship cryptocurrency and the precious metal has dropped to near zero since June 2021, and has kept trending down.