The investments in crypto funds and products reached a record high value of $1.31 billion in last week, reported Reuters on Monday. The increased inflow of investments is a result of plunging crypto market value.
In the first two weeks of January, bitcoin bull rally was on full swing. The altcoin followed the suit of BTC taking the total market cap of cryptocurrency to 1 Trillion USD. However, now the bill rally seems over. Bitcoin has had massive corrections in the past two weeks. It shook and bewildered the new investors. Nonetheless, there are individuals applying ‘buy the dip’ strategy. Thus the investments in crypto are on the rise.
The weekly investment inflow was a record high. While the total asset under management (AUM) have decreased in value from $34.4 on Jan 8th to $29.7 on Jan, 22th.
Bitcoin’s bull rally always attracts the ‘speculative mania‘ and euphoric response from the crypto community. The investors are too eager to buy and then sell as soon as the clouds of correction appear on the chart. This behaviour brings the price down. Similar has happened this time around.
The price of BTC significantly dropped on Friday reaching $28,000. This drop was seen as an opportunity by investors. 97% of investment flow in last week went to Bitcoin. The total daily trade volume of currency is lingering at $12.3 billion per day.
James Butterfill, the investment strategist at CoinShares, gave the following comments about this event:
The recent price weakness, prompted by recent comments from Secretary of the U.S. Treasury Janet Yellen and the unfounded concerns of a double spend, now look to have been a buying opportunity with inflows breaking all-time weekly inflows,
Financial analysts are closely observing the price movements of bitcoin. According to Glaasnode’s report on Monday, the BTC charts depicts bullish trends in the coming days.