Bitcoin's Big Rally: Analyst Makes Bold Predictions - COINTURK NEWS
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Bitcoin’s Big Rally: Analyst Makes Bold Predictions

3:23 pm (64 days ago)
October 2, 2023

Bitcoin price has started to rise again in the early hours of today. This recovery came as a surprise to most investors. While it was thought to be on the verge of a similar drop to previous movements, the sudden rise of BTC price above $28,000 also relieved battered altcoins. But there’s more. The latest institutional demand report paints a better picture.

Institutional Investors and Crypto

The report published weekly by CoinShares reflects the interest of institutions in crypto every week. Even though Spot ETF approvals have not yet arrived, institutional investors can take risks in this field through trusts and other investment vehicles. In the past six weeks, we have seen stable outflows from crypto funds due to the negativity in the overall market sentiment.

Last week, there was a $21 million inflow into crypto investment products for the first time in six weeks. These inflows, which provide positive signals for this week, came at a time when the US government was in a difficult situation. It is thought that the intensified inflows on Friday were a preparation for a government shutdown. However, temporary government shutdown problem was also solved as the Senate approved a 45-day extension.

Crypto Investor Report

Despite the recent increase in demand, volumes in both the investment products market and the broader crypto market are below seasonal levels. In other words, if we are going to see a comeback, a strong rally can start with volume increases. If volume increases do not occur, a single FUD will be enough for the recent recovery to reverse.

While the US saw a $19 million outflow last week, investors in Europe and Canada made $23 million and $17 million worth of crypto fund purchases, respectively. Most of the inflows were into Bitcoin funds and exceeded $20 million.

Bitcoin Short product outflows continue. Since April, there has been an $85 million outflow from Bitcoin Short products. This shows that institutions have lost faith in a major drop.

Interest in altcoins was weak last week, as it often is. SOL Coin saw a $5 million inflow. Out of the past 27 weeks, altcoins witnessed outflows for only 4 weeks. This made it the most favored altcoin by institutional investors.

ETH saw outflows for the seventh consecutive week. Blockchain stocks, on the other hand, experienced an outflow of $8.4 million, contrary to the general demand.

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