The crypto market has plunged to its lowest level in approximately 12 months. However, the negative market sentiment has not affected institutional investors. The weekly digital asset fund flows report from CoinShares shows that crypto investors jumped into the market to buy the dip as inflows reached $274 million, the highest level since the start of 2022.
Bitcoin remained the primary benefactor of the latest sentiment shift among institutional investors. Investment products related to the world’s most valuable digital currency attracted a whopping amount of $299 million. Ethereum (ETH) on the other hand witnessed a contrasting picture as outflows totaled $27 million last week.
“Digital asset investment products saw record weekly inflows for this year, totaling US$274m last week. A strong signal that investors saw the recent UST stable coin de-peg and its associated broad sell-off as a buying opportunity. North American investors saw inflows totaling US$312m, in contrast to European investors, where sentiment was polarized but in aggregate saw outflows totaling US$38m. Bitcoin was the primary benefactor, with inflows totaling US$299m last week, suggesting investors were flocking to the relative safety of the largest digital asset,” CoinShares noted.
Buy the Dip Sentiment
Throughout the history of the cryptocurrency market, large players jumped into the market right after corrections to take advantage of the “buy the dip” sentiment. The situation looks pretty similar this time around as well.
Amid the market crash, Whale Alert highlighted the movement of more than 10,000 BTC in multiple transactions over the weekend.
“Bitcoin rallied on Sunday to $31,500. As soon as US stock market futures opened this morning and started falling, Bitcoin dropped too due to the current risk-on correlation and fell to $29,200. I am optimistic for the second half of the year, as inflation expectations are anchored (meaning stable),” Marcus Sotiriou, Analyst at GlobalBlock, said.