The recent crypto market crash was a hard hit for investors and organizations with investment funds backed by Bitcoin. The nine-week losing streak that the cryptocurrency has been on showed no sign of letting up last week, but some analysts are predicting an opportunity in June when they believe it will bounce back again.
Crypto stocks saw an influx of money last week, with regulated funds attracting over $87 million in new investment. The positive trends came after they lost a value of at least $141 million, providing evidence that some investors are beginning to see value again for cryptocurrencies as well as blockchain technology firms.
When it comes to investing in cryptocurrency, Bitcoin is the king. The inflows from funds backed by Bitcoins were larger than any other type of currency or investment last week with $69 million invested on net basis over the course of 7 days! In contrast there was an outflow for Ethereum based investments which totalled $11.6 million dollars.
The recent influx of money into cryptocurrency funds has been significant, but it’s still behind last year’s numbers, according to CoinShare. The inflows from last week pushed the yearly total for crypto backed investments to $0.52 billion, which is significantly less than what we saw at this time last calendar
Investors seem to be investing more in Bitcoin despite the significant losses this year. CoinShares also notes that they are buying on price weakness which could mean even greater things for our favorite cryptocurrency.
The crypto market has been under pressure in recent days, with prices displaying worrying signs of stress. QCP Capital noticed that there was a concerning divergence between stocks and cryptocurrencies over the past week-including S&P 500 up 10% since May 20 while Bitcoin lost ground.
Antoni Trenchev, co-founder and Managing Partner of crypto lender Nexo, spoke with Bloomberg and said: “This is the type of de-correlation nobody wanted. Bitcoin has yet to test its sub-USD 26,000 on May 12 lows. One senses that it’s only a matter of time, given Bitcoin’s failure to mirror the Nasdaq’s gains in the past week.”
Bitcoins are often considered to be a risky asset, but an analyst has suggested that they may have finally found footing in the market with his theories on how it will play out. Benjamin Cowen is known for predicting long cycles where he sees potential bounces coming soon according to a video, which points out many candles inhabited by red shades means there’s more than just sell-side pressure at work here – suggesting some buyers might be emerging too.
As of this writing, Bitcoin is traded at $31,543.80, going up 3.16% in the last 24 hours.
