Bitcoin Funds See Weekly Inflows as Analysts Debate ‘Bounce’

Bitcoin Funds See Weekly Inflows as Analysts Debate ‘Bounce’

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Bitcoin Funds See Weekly Inflows as Analysts Debate ‘Bounce’

Last week, investment funds backed by bitcoin (BTC) other cryptocurrencies again witnessed inflows, despite BTC extending its nine-week losing run. Similarly, some analysts are becoming optimistic about the near-term future for bitcoin, forecasting an upward “bounce” in June.

According to data from the crypto research and investment business CoinShares, regulated crypto-backed funds experienced inflows of USD 87 million last week, compared to outflows of USD 141 million the week prior.

The inflows were by far the greatest in bitcoin-backed funds, with USD 69 million invested net during the past week. In contrast, funds backed by ethereum (ETH) were the least popular among investors last week, with USD 11.6 million leaving the market.

The inflows last week pushed the year-to-date inflows to all crypto-backed funds to USD 0.52bn, according to CoinShares, which is “far below” the USD 5.9bn witnessed at the same time last year.

Despite BTC’s negative returns for the year, the fact that year-to-date inflows remain positive is “encouraging” and suggests that investors “are buying on price weakness,” according to CoinShares.

QCP Capital, a crypto trading firm based in Singapore, stated in a Sunday update that the market is “exhibiting indications of stress” based on the performance of the crypto market during the last week, prior to BTC’s recent acceleration.

It stated that there has been a “worrisome” price gap between cryptocurrencies and stocks, with the S&P 500 and Nasdaq trading roughly 10 percent higher since May 20, while BTC and ETH have lost ground during the same period.

Nobody desired this form of de-correlation. Bitcoin is failed to hit its May 12 lows below USD 26,000. Given bitcoin’s failure to follow the Nasdaq’s advances over the previous week, it seems only a matter of time,” Antoni Trenchev, co-founder and managing partner of crypto lender Nexo, told Bloomberg.

Benjamin Cowen, an analyst and trader known for his ‘lengthening cycles’ explanation for the bitcoin price, was among those bullish on bitcoin for June. Cowen said in a new video update that the bitcoin chart has now printed nine straight red weekly candles, the most ever for the commodity.

The 90-day moving average of the so-called Crypto Fear & Greed Index is “the lowest it has ever been,” according to Cowen, who also said that June could be the month in which a relief rally occurs.

Cowen said that due to the excessive amount of concern in the market, a counterreaction could occur shortly. Ki Young Ju, CEO of the crypto analytics company CryptoQuant, reiterated this assessment on Monday, tweeting that bitcoin is “approaching the cyclical bottom.”

Bitcoin UTXOs (Unspent Transaction Outputs) now comprise 62 percent of Bitcoin’s realized capitalization, the analyst said, adding that “this indicator also reached 62 percent during the March 2020 selloff.”

Bitcoin’s realized capitalization is its market capitalization, which is determined using the BTC price at the time each UTXO was last changed on the blockchain.

In the meantime, Zhu Su, the co-founder of the cryptocurrency hedge fund Three Arrows Capital, stated today that movements in the stock market could provide a clue for cryptocurrencies, as MicroStrategy and Coinbase stocks had risen dramatically from their lows.

The price increase is “more indication of American baby boomer surrender on cryptocurrencies in mid-May,” a cryptocurrency investor stated.

Bitcoin Funds See Weekly Inflows as Analysts Debate ‘Bounce’, BTC traded for USD 30,668 at the time of writing (14:25 UTC), up 4% over the previous 24 hours and up little over 1% over the previous week. ETH traded concurrently at USD 1,914, up over 6 percent for the day but down about 7 percent for the week.

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