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BITCOIN IS BOTTOMING DOWN DUE TO CRYPTO WINTER

BITCOIN IS BOTTOMING DOWN DUE TO CRYPTO WINTER

Some investors are now betting that bitcoin is coming out, judging by the money that goes into the cryptocurrency currency list, which represents a marketable yet popular piece among institutional players and traders alike.


The total flow of such funds turned out to be positive last month, with a weekly gain of $ 66.5 million, a change from negative April when they saw a weekly average gain of $ 49.6 million, according to data provider CryptoCompare.


"Especially the institution, and to some extent investors are aware, the pain has already been tolerated, and we are closer to the bottom than it is," said Ben McMillan, chief investment officer of IDX Digital Assets in Arizona. .


"If you get into crypto at these levels, a little bit of flexibility nearby can benefit you in the long run," he added. "Many institutional investors are beginning to view crypto as a source of long-term growth potential."


It’s hard to know if the fixed flow will last longer, either, or if the newly emerging trend will be repeated across the wider market.


Many people will think twice before they hit the market again, having become increasingly entrenched as crypto has been plagued by concerns over global financial stability and inflation. Bitcoin has lost almost half of its value since peak in November, falling by a third in 2022 and has been falling to about $ 30,000 a month.


Data from the portfolio nonetheless shows that some investors are returning to crypto, despite the perceived security of e-commodity products (ETP) with their promise of big money and security.


Assets under ETF management of several bitcoin-futures went up last week, according to Kraken Intelligence. Assets for ProShares Bitcoin Strategy ETF have grown by 6%, while for Global X Blockchain & Bitcoin Strategy ETFs and VanEck Bitcoin Strategy ETFs have increased by more than 3%.


By comparison, the ProShares bitcoin fund saw a $ 127 million release in April.


The bullish trend has expanded in June, when the capture of bitcoin ETP exceeded 205,008 bitcoin in the first two days of the month, the Norwegian crypto research company Arcane Research found.


"This is a promising sign for the future," said Arcane commentator Vetle Lunde.


Indicating that investors are selective and cautious, only bitcoin currency has earned revenue while investments focused on ethereum and other crypto are still meeting exits.


RED


But let’s not forget, although the wealth of other currencies may emerge, many have posted negative profits this year as the crypto market is declining.


U.S. digital assets have lost 46% on average so far by 2022, sending a loss of 22% in May, according to Morningstar.


All products listed on digital assets are followed by CryptoCompare losses in May, making it the worst product for Grayscale's Digital Large Cap Fund, with a fall of 38.5%.


"Bitcoin has been integrated into a concert and a wide range of recent market activity, investors are looking for something low and not sure where it is," said Jack McDonald, CEO of PolySign, which focuses on solving digital asset storage for institutional investors.


Shares of Grayscale Bitcoin Trust is one of the largest bitcoin currencies with assets of more than $ 19 billion, trading at a 29% discount to get the total value of the assets, close to a tight discount from the beginning and showing low product demand.


And despite the appointment in May, many market observers expect the revenue of crypto currencies to remain low until significant economic and regulatory risks become more apparent.


"We are waiting for a high sentencing bid to get back to the market," McMillan added to IDX. "There is still a lot of wood to cut on the macro front."

Source: yahoo




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