Crypto’s bearish run from May.
Cryptocurrency market was trying to cope from the Ukraine-Russia war when, the market collapsed in May, wiping out billions of dollars from the market. The situation of the market turned out rather pathetic. Terra’s stablecoin plummeted and its sister token, Luna cryptocurrency collapsed and lost around 99% of the value. One of the main reasons for the prolonged bearish run of the cryptocurrency market was the collapse of Terra.
The prolonging bearish run made sure that, the world’s most capitalized cryptocurrency, Bitcoin, also faced the blunt of it. The cryptocurrency fell by at least 70% from its peak and was trading below $20,000 at one point of time. The month of May was a night mare for cryptocurrency market and June was nothing less. But it is believed that in July, the tables have turned a little bit. According to a study done by Coinshare, institutions that deal in cryptocurrency have actually started to turn more bullish and a lot off cryptocurrency inflows are going around the market.
Leading digital asset manager CoinShares claims that throughout July, institutions chose to reinvest in cryptocurrencies. According to CoinShare’s most recent Fund Flows Weekly report, digital asset investment products had inflows totaling $474 million throughout July, the biggest amount of any month in 2022.
According to the report generated by Coinshares, more than $80 Million flowed inward into bitcoin investment products last week. This news is sure to bring in a lot of positivity in the market among the bitcoin investors. Although there was an inflow in bitcoin investments, it was noted that, the trading value of the currency was actually down by 2%, depicting the volatile nature of the currency.
According to the report shared by Coinshares, it was observed that around $1 million inflows have happened for the world’s second most capitalized cryptocurrency, Ethereum. The report also shared that, the outflows of the cryptocurrency was at a staggering value nearing $350 Million.
Solana was actually preferred by the institutions among the alt coins, as inflows of the cryptocurrency was recorded at around $1.5 million.
Though, the institutions have been turning bullish in recent times, Coinshares also made it clear that the case was not the same for the market in general. The digital asset manager also added that, even though there is a bullish trend coming into the market, the trading activity has remained low and nothing historic was recorded in trading.