Quick summary:
- According to CoinShares, digital asset investment products saw record weekly inflows of $274 million last week
- Bitcoin also saw $299 million in inflows in the last week
- Institutions saw the recent crypto market meltdown caused by USTs depegging as a buying opportunity
The crypto market meltdown of last week catalyzed by the depegging of TerraUSD (UST) and the inflation of LUNA that soon followed was viewed by institutional investors as a buying opportunity.
According to a report by the team at CoinShares, the sell-off resulted in digital asset investment products seeing record weekly inflows for this year, hitting $274 million last week. The report reiterated that institutional investors saw ‘the recent UST stable coin de-peg and its associated broad sell-off as a buying opportunity.’
Furthermore, Bitcoin was the major benefactor of the turmoil seeing inflows of $299 million in the same time period. The report concluded that the purchasing of Bitcoin hinted that ‘investors were flocking to the relative safety of the largest digital asset.’
Bitcoin Has Been Relatively Stable in the Last Week
With respect to stability, Bitcoin has been relatively stable in the last seven days, experiencing a 2.97% drop in value compared to Ethereum, which has seen a 10.64% decrement in price in the same period.
A Retest of $28k is Probable for Bitcoin, so is a Move Back to $32k
The 4-hour BTC/USDT chart below further confirms Bitcoin’s stability in the last week as it ranges between the local low of $26,700 and the $32k resistance level. Also, from the chart, it can be observed that Bitcoin’s next move is somewhat unclear as its MFI and RSI are in the neutral territory of 50 and 48, respectively.
Bitcoin’s MACD on the 4-hour chart is exhibiting some signs of weakness, with its histograms confirming a reduction in buying activity. Consequently, Bitcoin could retest the $28k support level if buyers do not step up to the plate.
At the same time, Bitcoin is attempting to recapture the 4-hour 50 moving average (white) as support that could open the doors to a push towards $32k.
Therefore, a wait-and-see approach might be the best course of action for the next 24 or 48 hours, given the mixed signals being exhibited by Bitcoin on the 4-hour chart.
[Feature image courtesy of Unsplash.com]
