Altcoins
Institutional investors sell $690 million in Bitcoin and Ethereum and favor Altcoins
Institutional investors have recently offloaded Bitcoin And Ethereum worth $690 million in a week, signaling a bearish outlook on these cryptocurrencies. On the other hand, there is growing interest in altcoins like Solana.
Significant Digital Asset Outflows: CoinShare Report
Over the past two weeks, digital asset investment products have seen massive outflows of $1.2 billion, according to CoinShares. The report shows that $484 million was withdrawn in a single week, mainly from the United States ($475 million) and Canada ($109 million).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.
Growing Interest in Altcoins Analyzed
While Bitcoin and Ethereum have faced heavy selling pressure, altcoins such as Solana have gained popularity. Solana saw $2.7 million in entries during the week. Currently trading at $127.85, GROUND saw a 4.7% drop in the last 24 hours but a slight increase of 0.6% in the last hour. At the beginning of June 2024, Solana’s price was around $166.14, peaking at $173.18 on June 4 before gradually weakening.
Institutional liquidation: is this a real correction?
The large institutional sell-off impacted the prices of Bitcoin and Ethereum, pushing Bitcoin below $61,000 and Ethereum below $3,300, each falling nearly 5% over the last 24 hours. According to CoinShare analysis, these outflows could indicate a real correction in the crypto market, as institutional investors adjust their holdings, reflecting doubts about possible interest rate cuts from the US Federal Reserve this year .
In conclusion, the recent change in behavior of institutional investors highlights a growing preference for altcoins amid a bearish stance on Bitcoin and Ethereum. This trend highlights the changing dynamics of the cryptocurrency market.
Read also: Mt. Gox will begin repaying its creditors in Bitcoin and Bitcoin Cash next week
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Vignesh SG
Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a sub-editor for a leading business magazine, published in Kerala. His interest in futuristic technologies led him to join a US-based software company specializing in Web3, Blockchain and AI. This stint inspired him to consider the future of journalism through the lens of next-generation technologies. Today, he covers the crypto scene for Coinpedia, discovering a dynamic new world where technology and journalism converge.