Bitcoin recovers from dip below $58,000
Bitcoin's (BTC) valuation retreated beneath the $58,000 mark, signaling a pause in acquisitions by institutional investors. Presently, BTC is valued at $59,332.20. This decline is in tandem with observations that point to a halt in the transfer of Tether (USDT) from the Tether Treasury to trading platforms in the last two days.
This interruption in USDT transactions hints at a temporary standstill in crypto acquisitions by institutional entities, which is likely influencing the current downward price trend. These movements were identified using the Arkham Intelligence blockchain analysis tool.
The digital currency market witnessed a widespread sell-off, with Ethereum (ETH) dipping 4.6% to $2,570. The downturn wasn't exclusive to ETH; Solana (SOL) plummeted by 8% to $145, Binance Coin (BNB) fell by 5.5%, and TON (TON) decreased by about 6% during morning transactions.
Nonetheless, according to data from CoinShares, the slump is seen by investors as an opportune moment to purchase. Last week saw an influx of $176 million into digital asset investment products, as investors capitalized on the recent price slump.
The sum of managed assets in digital investment products has bounced back to $85 billion, after a correction previously erased over $20 billion. This recovery is chiefly attributed to the revival in cryptocurrency prices rather than fresh investment influxes.
While $176 million was injected as investors leveraged the price downturn, this figure alone doesn't explain the $10 billion recuperation in AUM. The bulk of this recovery is due to the value increase of existing assets within these investment products as cryptocurrency prices surged.
Interestingly, Ethereum has been the main beneficiary of the recent market downturn. Its year-to-date inflows have reached $862 million, the highest since 2021, a surge propelled by the introduction of US spot-based ETFs.
Although Bitcoin initially experienced outflows at the start of the week, it quickly reversed course to amass significant inflows, netting a weekly inflow of $13 million.
The future trajectory for Bitcoin, however, remains a subject of speculation. Providing a more guarded viewpoint, digital assets analysis firm 10x Research posits that a breakthrough to new all-time highs for Bitcoin might not be on the horizon, with potential risks tilted towards a decline.
