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Breaking News: SoftBank, Ark Invest Among Potential Investors In Tether's $15 Billion Funding Round
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Breaking News: SoftBank, Ark Invest Among Potential Investors In Tether's $15 Billion Funding Round

Bitcoin Leads Investment Flows As Ethereum Slips, What This Says On Market Sentiment

Reynaldo Marquez
Reynaldo Marquez
1 year ago
2 mins read
Bitcoin BTC BTCUSD Ethereum ETH

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Bitcoin remains strong on lower timeframes but could see some short-lived downside pressure after being rejected at the $45,500 price point. The first crypto by market cap took an upside trajectory last week on the back of several bullish headlines, and an increase in demand.

Related Reading | TA: Bitcoin is Surging, Why Bulls Could Aim More Upsides

As of press time, Bitcoin trades at $43,816 with a 1.2% and 13.5% profit in the last 24 hours and 7 days, respectively.

BTCUSD_2022-02-08_12-00-20
BTC records losses on the daily chart. Source: BTCUSD Tradingview

Data from ByteTree suggest Bitcoin’s latest price action is “encouraging”, but BTC’s price needs to go above the 280-day on their metric called ByTrend. If the bullish momentum continues, this cross will put BTC at around $50,000 per coin.

Bitcoin BTC BTCUSD
Source: ByteTree via Twitter

Further data provided by ByteTree records an increase in the amount of Bitcoin held by funds. This metric has been on the rise since October 2021, it stood flat for a majority of January 2022 but resumed it uptrend from 840,000 BTC.

The number of BTC held by funds rose from 840,000. The demand for the cryptocurrency has been increasing as more investment products offered, directly or indirectly, exposure to the price of Bitcoin.

ByteTree records over 100,000 BTC held by Exchange Traded Products and over 650,000 BTC held by closed-ended funds, such as the Grayscale Bitcoin Trust (GBTC).

Additional data from ByteTree provided by Jarvis Labs records a decline on the BTC fund inflows since January 2021. This metric hit rock bottom around August the same year after BTC’s price dropped from it’s a high of $65,000 to its yearly open around $30,000, losing 50% of its value.

Bitcoin BTC BTCUSD Ethereum
Source: ByteTree via Jarvis Labs on Twitter

Later in the year, the BTC funds inflows started to trend to the upside once again but peaked around December last year. The uptick could suggest investors are turning bullish on BTC, one again.

Investors Once Again Bullish On Bitcoin?

However, the uptick could be just an increase in BTC inflows for investment firm Purpose’s ETPs as Jarvis Labs claimed:

(…) thanks to Purpose’s ETP’s inflow the net inflow for this month is positive so far after dropping in inflows over 3 months which was attributed to tax-oriented selling.

Separate data provided by investment firm Coinshares also records an increase in inflows for Bitcoin products. The cryptocurrency has seen $71 million in the past week alone but continues to record low volumes with only $1.8 billion against $3.4 billion in mid-January 2022.

Related Reading | The Bear Signal That Suggests Another Bitcoin Crash Is Coming

The investment firm believes the rise in inflows demonstrates investors are growing bullish, at least, for BTC. Ethereum inflows tell a different story, according to Coinshares:

Investment products flows for Ethereum suggest investors remain bearish with outflows of US$8.5m, having entered the 9th week run of outflows totalling US$280m representing 2.2% of AuM

Bitcoin BTC BTCUSD
Source: CoinShares
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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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