Crypto Investors Buy Market Dip, Weekly Inflows Hit Record High

The crypto market has plunged to its lowest level in approximately 12 months. However, the negative market sentiment has not affected institutional investors. The weekly digital asset fund flows report from CoinShares shows that crypto investors jumped into the market to buy the dip as inflows reached $274 million, which is the highest level since the start of 2022.

Bitcoin remained the primary benefactor of the latest sentiment shift among institutional investors. Investment products related to the world’s most valuable digital currency attracted a whopping amount of $299 million. However, Ethereum (ETH) witnessed a contrasting picture as outflows totalled $27 million last week.

“Digital asset investment products saw record weekly inflows for this year, totalling US$274m last week. A strong signal that investors saw the recent UST stable coin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term de-peg and its associated broad sell-off as a buying opportunity. North American investors saw inflows totaling US$312m, in contrast to European investors, where sentiment was polarized but in aggregate saw outflows totaling US$38m. Bitcoin was the primary benefactor, with inflows totaling US$299m last week, suggesting investors were flocking to the relative safety of the largest digital asset,” CoinShares noted.

Buy the Dip Sentiment

Throughout the history of the cryptocurrency market, large players jumped into the market right after corrections to take advantage of the 'buy the dip' sentiment. The situation looks pretty similar this time around as well.

Amid the market crash, Whale Alert highlighted the movement of more than 10,000 BTC in multiple transactions over the weekend.

“Bitcoin rallied on Sunday to $31,500. As soon as US stock market futures opened this morning and started falling, Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term dropped too due to the current risk-on correlation and fell to $29,200. I am optimistic for the second half of the year, as inflation expectations are anchored (meaning stable),” Marcus Sotiriou, the Analyst at GlobalBlock, said.