If institutional investors left the Bitcoin field to small investors after the May correction, the inflows in investment products testify to a renewed increase in demand for “big money”. The market update.
Although the first profit-taking is slowing the upward trend in the crypto market, the total market capitalization increased with a slight daily increase of 0.2 percent to 2.44 trillion US dollars. This means that only 130 billion US dollars are missing until the May record high. The market capitalization of the largest cryptocurrency, at 983 billion US dollars, is also only a few meters away from the symbolic 1 trillion mark. At the time of going to press, the Bitcoin price was trading at $ 52,304, up 1.2 percent on the day.
The altcoins, on the other hand, have to give up. Ethereum (ETH) buckles by 0.7 percent, Cardano (ADA) gives way by 6.3 percent, while Binance Coin (BNB) slips by 2 percent and Dogecoin (DOGE) is fighting with a price drop of 4.2 percent. On the sunny side, however, are XRP and Solana (SOL), who are undeterred continuing to soar. In a daily comparison, the now seventh largest cryptocurrency rose by 28 percent to 187 US dollars. After all, the Ripple-Coin posted an increase of 2.4 percent.
First Bitcoin inflows in eight weeks
When the Bitcoin course and with it the overall market was pushed to the ground by a massive wave of sell-offs in May, “Big Money” also stayed out of the crypto business for the time being. At the beginning of the year there were still reports from institutional investors who were discovering the market for themselves and flooding it with capital, but it was quiet in the middle of the year. With the prices falling asleep, the investor professionals have also kept their feet still. Gradually, however, they seem to be flowing back onto the digital stock exchange floor.
According to the weekly report from asset manager CoinShares, Bitcoin investment products are seeing their first inflow in eight weeks. In total, BTC investments totaled $ 59 million, “which indicates a possible turnaround in investor sentiment.” Spending across all of the digital investment products combined is $ 140 million – a 42 percent increase over the previous week.
Altcoins are playing an increasingly important role in the portfolio. The market share of all altcoins is now 35 percent. With a total share of 28 percent, Ethereum in particular is becoming increasingly popular, “which underlines that the dominance of Ethereum continues to increase”. Of all the coins, however, “Solana remains the favorite with weekly inflows totaling $ 13.2 million in the past week, doubling total inflows in the year to date”.
Transactions get fatter
Another sign of rising demand from institutional investors is the gradual increase in the volume of transactions. In the bull market of the first half of the year, the average transaction size has increased significantly and has “reached a peak of 58,600 USD during the sell-off in May”, as the blockchain analysts Glassnode write. After “this development has largely cooled off from July”, the average transaction size is back at a strong level between USD 30,000 and USD 36,000.
This means that the average transaction size is again significantly higher than the peak values achieved in 2017. Despite the summer correction, the current level represents a 370 percent increase compared to the 2019/20 bear market, “which reflects the continuing high level of interest from institutional investors”.