Altcoins
Institutional investors dump $690 million into Bitcoin and Ethereum, favoring Altcoins
Institutional investors have recently dumped Bitcoin AND Ethereum is worth $690 million in one week, signaling a bearish outlook on these cryptocurrencies. In contrast, altcoins like Solana are attracting growing interest.
Significant Outflows from Digital Assets: CoinShare Report
According to CoinShares, over the past two weeks, digital asset investment products have seen a massive outflow of $1.2 billion. The report shows that in just one week, $484 million was withdrawn, mostly from the United States ($475 million) and Canada ($109 million). However, Switzerland and Brazil bucked this trend, with inflows of $39 million and $48.5 million respectively.
Analysis of the growing interest in Altcoins
While Bitcoin and Ethereum have faced heavy selling pressure, altcoins like Solana have gained favor. Solana recorded inflows of $2.7 million over the week. Currently trading at $127.85, SOL saw a decline of 4.7% in the last 24 hours but a slight increase of 0.6% in the last hour. As of early June 2024, Solana was priced at around $166.14, peaking at $173.18 on June 4 before gradually weakening.
Institutional sell-off: is this a real correction?
The significant institutional sell-off impacted Bitcoin and Ethereum prices, pushing Bitcoin below $61,000 and Ethereum below $3,300, each down nearly 5% over the past 24 hours. According to CoinShare analysis, these outflows could indicate a real correction in the cryptocurrency market as institutional investors adjust their holdings, reflecting doubts about potential interest rate cuts by the US Federal Reserve this year.
In conclusion, the recent change in institutional investor behavior highlights a growing preference for altcoins amid a bearish backdrop on Bitcoin and Ethereum. This trend highlights the changing dynamics in the cryptocurrency market.
Read also: Mt. Gox will begin repaying creditors in Bitcoin and Bitcoin Cash next week
Stay tuned Coinpedia for more updates on this!
Vignesh SG
Vignesh is a young journalist with decades of experience. A proud alumnus of IIJNM, Bangalore, he spent six years as a sub-editor for a leading business magazine, published from Kerala. His interest in futuristic technologies led him to work at a US-based software company specializing in Web3, Blockchain and AI. This period inspired him to see the future of journalism through the lens of next-generation technologies. Now he covers the crypto scene for Coinpedia, discovering a vibrant new world where technology and journalism converge.