Last week the market was raided by bears. This saw most top coins plummet in a couple of hours and sentiments change. The plunge began with Bitcoin dropping below $10,500 before finally falling below $10K.
Altcoins followed in tandem led by two of the largest and popular ones, Ethereum and Ripple’s XRP. By the end of the week, Bitcoin was hanging on the $10K position after bouncing back from a $9,600 support. Ethereum was trading around the $185 position after finding support just below $180. XRP on its part was trading around $0.26.
- GBTC’s assets under management (AUM), which in this case is just the value of all the bitcoins held in the fund, reached a 10-month high of $1.42 billion
- By the end of April, Grayscale held 225,638 bitcoins or just under 1.3% of bitcoin’s total circulating supply
- Bitcoin inflows, or the amount of bitcoin added to GBTC’s holdings, have reached an all-time high in April signaling an increase in institutional demand
- The GBTC premium is currently nearly 40% and has increased consistently since December, which shows a shift of the sentiment in the market
Armstrong Confirms Institutional Investment In Crypto
As widely reported, the recent dip has not deterred investors from their bullish goals. This has been an opportunity for many to accumulate and hold for the next surge. Some of these investors are institutional folks. These have been reportedly flocking into the industry in recent months.
This was confirmed late last week by Coinbase CEO Brian Armstrong. According to the CEO, they are seeing around $300-400 million a week in new crypto deposits come in from institutional clients. The recent dip will be an opportunity for them to buy and buy some more. This could trigger the next wave of green as they accumulate hard.
In the weeks to come demand from these institutions will begin to be felt in the market and demand will rise driving prices up. In the meantime, most retail investors will continue to accumulate, taking advantage of the recent dip and hodl, a tactic right from institutional investor’s playbook.