Institutional inflows in the market have not slowed down. Presumably, the recent rounds of inflows have something to do with the recovering market prices. Retail investors are also buying into the market. But with a $1 trillion market cap, real movements in the market can only come from big money FOMOing into the market.
Bitcoin, as well as altcoins, are having a good season. After the summer of low momentum, things are starting to look up again for the cryptocurrency market. Large, medium and small market cap coins are all seeing an appreciation in their value as “Uptober” rages on. Only less than two weeks into the month, bitcoin has seen market prices that have sent it shooting to four-month highs.
Institutional Investors Still Bullish On Bitcoin
Since the price of the top digital currency is rallying, investors are putting money back in the market to make sure that they do not miss out on the train. Inflows for the week were $226 million. But bitcoin dominated this with a total weekly inflow of $225 million. Leaving altcoins in the dust with only $1 million of inflows for the week.
Related Reading | Why A U.S. Bitcoin ETF Has A 75% Chance Of Being Approved In October
This marks the eight straight weeks of inflows for the crypto market that come up to a total of $638 million of inflows. Bringing the total assets under management (AUM) to $63.65 billion.
The record for assets under management for crypto currently sits at $67 at its peak and currently, AUM is only 5% away from reaching this all-time high. Most of this has come from renewed faith in bitcoin as sentiment has turned towards the positive for the digital asset.
BTC price rebounds from Tuesday lows | Source: BTCUSD on TradingView.com
The recent statements from SEC boss Gary Gensler saying that the U.S. was not planning on banning bitcoin have helped to turn the tide in favor of the asset. With this, institutional investors have upped their bet in the market. And ahead of the first bitcoin ETF to be approved in the country, big money is getting ready to trade on the asset.
Still Not Altcoin Season?
Altcoins did not do especially well with inflows the past week. Although top earners like Solana and Cardano saw inflows, the numbers were quite disappointing. Altcoins like Polkadot, Ripple, and Litecoin all experienced outflows to the tune of almost $3 million, signifying a decreased interest in the altcoin market from institutional investors.
Altcoins have not entirely lost out to bitcoin but the pioneer cryptocurrency still commands a significant share of the market. Ethereum also experienced outflows and this dragged its total AUM to 24%. With bitcoin creeping up to take more market share from the number 2 contender.
The total market inflows mark a significantly positive sentiment among institutional investors. With so much money flowing into the market, the bull rally is likely to continue and a new all-time high may be imminent.
Featured image from City AM, chart from TradingView.com