cryptovibes.com
Bitcoin and other crypto-assets have seen some level of stability following last week’s volatility in the market. The stability has also reflected on the overall market cap of all cryptocurrencies, which managed to stay above the $2.5 trillion mark.
Cardano (ADA), Ethereum (ETH), and Solana (SOL) maintained their performance from last week and remained one of the biggest gainers. In the past week, SOL has surged by almost 10%, adding $6 billion to its market cap. Other crypto assets also saw a steady performance, with ETH increasing by 5% within the past week
Retail Investors Show Concerns Over Increased Exchange Outflows
Crypto firm Santiment highlighted that a jump in the COVID-19 variant concern and FUD have triggered an increase in Bitcoin exchange inflows over outflows. As a result, traders are considering the option of selling their BTC holdings.
The platform noted that about 10,242 more BTC moved out from exchanges compared to the number that came in. The data highlighted by Santiment could be a gauge of investors’ interest to take their profit when the market is still steady. However, many institutional investors do not share the same feeling.
The crypto market has historically seen market corrections after going through a period of market sustenance. But with the market cap still at the $2.5 trillion threshold, it shows that long-term traders are still holding tight to their investment and are not ready to let go yet.
Institutional Investors Dictate The Pace In The Market
Recent activities in the crypto market show that institutional investors are still the movers and shakers in the market. Their activities can determine whether the price of an asset can go up or fall. As expected, the crypto market saw a slight increase after some whales bought leading digital assets. Furthermore, Institutional investors entered the market and joined the “buy the dip” movement, which kept the price of digital assets steady.
While many of the investors are still holding onto their BTC investments, some are expanding their portfolios to include altcoins like ETH and SOL.
Microstrategy recently expanded its BTC holding by acquiring 7,000 coins. Other major investors are also holding steady on the world’s most valuable cryptocurrency in anticipation of a further upward drive in its price.
However, while the market’s sentiment remains bullish, some retail traders are considering selling some of their holdings due to Bitcoin Exchange’s inflows.