The organization quietly put all its efforts to “bottom-fishing” Bitcoin (BTC) when the market was in crisis

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2022-05-19 08:30:33

The downward move in Bitcoin price seems to be a great buying opportunity for institutional investors at the moment.

The organization silently put all its efforts to “bottom-fishing” Bitcoin (BTC) when the market was in crisis

According to a new CoinShares report on weekly investment by the institution, they have poured up to $299 million in Bitcoin products. CoinShares research lead James Butterfill said this is an “unprecedented” investment of value for BTC during a strong market downturn.

In addition, he also revealed that this was the largest week of investment flows since October 2021 and became the 19th largest week since CoinShares began tracking the index in 2015.

More notably, October 2021 is also the time when the Bitcoin price is on a steady track to establish an ATH at $69,000 with a market capitalization hitting $1.3 trillion as institutional players pour in up to $2 billion to buy. Bitcoin, pushing their investment in BTC to a record $9 billion.

The CoinShares report also noted a $27 million pullback from Ethereum exchange-traded funds last week, bringing the total amount of ETH withdrawn in 2022 to $236 million. Solana (SOL), Polkadot (DOT) and several other assets all suffered similarly negative levels ranging from $0.6 million to $5.3 million.

Out of all the top crypto funds, Grayscale remains the largest, accounting for $26 billion of the $39 billion under management. Earlier today, Grayscale launched its first ETF product in the European market while awaiting a decision from the SEC on converting its Grayscale Bitcoin Trust (GBTC) fund into a spot Bitcoin ETF. The good news is that last week, Grayscale made a lot of progress in meeting with the SEC on this issue.

Considering the general situation, the sudden disaster of LUNA-UST combined with a number of other important factors such as signs of whales fleeing, the move to raise interest rates from the Fed as well as the wave of sell-offs from miners. The high probability that the shares of Bitcoin miners will simultaneously plunge has been creating huge pressure on Bitcoin, causing BTC to drop to a 17-month low below the $28,000 mark for the first time in two years. last week.

However, the excitement returned from institutional investment plus quite optimistic signal about the frequency of effective operation of the BTC network through the recognition of Bitcoin mining difficulty continuing to peak, hashrate. Maintaining a relatively high level is bringing new hope for BTC. Therefore, Bitcoin will face the opportunity to end 7 consecutive weeks in the red, although quite “fragile” to start a gradual recovery in the second half of May.

At press time, Bitcoin is trading at $30,540 and is up 2.68% over the past 24 hours.

BTC/USDT price 1D chart.  Source: Binance
BTC/USDT price 1D chart. Source: Binance

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