{"id":29808,"date":"2022-06-13T23:24:32","date_gmt":"2022-06-14T03:24:32","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=29808"},"modified":"2022-06-13T23:24:44","modified_gmt":"2022-06-14T03:24:44","slug":"institutional-investors-dump-101-5m-worth-of-crypto-in-anticipation-of-hawkish-monetary-policy","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/institutional-investors-dump-101-5m-worth-of-crypto-in-anticipation-of-hawkish-monetary-policy\/","title":{"rendered":"Institutional investors dump\u00a0$101.5M worth of crypto in anticipation of hawkish monetary policy"},"content":{"rendered":"\n

The\u00a0current\u00a0state\u00a0of\u00a0the\u00a0crypto\u00a0market\u00a0has\u00a0sparked\u00a0many\u00a0questions\u00a0and\u00a0assumptions\u00a0with\u00a0CoinShares\u00a0<\/a>reporting\u00a0that\u00a0almost\u00a0$100M\u00a0has\u00a0left\u00a0US\u00a0crypto\u00a0funds\u00a0in\u00a0anticipation\u00a0of\u00a0hawkish\u00a0monetary\u00a0policy.<\/p>\n\n\n\n

\"Institutional
Institutional investors dump\u00a0$101.5M worth of crypto in anticipation of hawkish monetary policy<\/figcaption><\/figure>\n\n\n\n

Coinshares\u00a0claims\u00a0that\u00a0Bitcoin\u00a0\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>has\u00a0been\u00a0pushed\u00a0into\u00a0“crypto\u00a0winter”\u00a0over\u00a0the\u00a0last\u00a0six\u00a0months,\u00a0asserting\u00a0that\u00a0this\u00a0is\u00a0due\u00a0to\u00a0the\u00a0US\u00a0Federal\u00a0Reserve's\u00a0increasingly\u00a0hawkish\u00a0rhetoric. <\/p>\n\n\n\n

Inflation rates <\/a>in the United States reached 8.6% year on year at the end of May, a level not seen since 1981. As a result, the market expects the Fed to take significant action to bring inflation under control, with some traders predicting three more 0.5 percent rate hikes by October.<\/p>\n\n\n\n

According to the latest edition of CoinShares' weekly Digital Asset Fund Flows report, outflows totaled $98 million between June 6 and June 10, with Europe accounting for only $2 million.<\/p>\n\n\n\n

At $56.8 million and $40.7 million, respectively, products offering exposure to crypto's top two assets, Bitcoin (BTC) and Ethereum (ETH), accounted for nearly all outflows. The month-to-date numbers likewise present a bleak picture, with BTC outflows totaling $91.1 million and ETH outflows totaling $72.3 million.<\/p>\n\n\n\n

\u201cWhat has pushed Bitcoin <\/a>into a \u201ccrypto winter\u201d over the last six months can by and large be explained as a direct result of an increasingly hawkish rhetoric from the US Federal Reserve.\u201d<\/p><\/blockquote>\n\n\n\n

Bitcoin in a crypto winter<\/h2>\n\n\n\n

Even though CoinShares said Bitcoin was in a crypto winter, the amount of money that has been put into BTC investment products so far this year is still $450.8 million. ETH funds, on the other hand, have lost $386,5 million so far this year, which shows that institutional investors still like digital gold a lot more than ETH.<\/p>\n\n\n\n

The report also mentioned that as of last week, the total assets under management (AUM) for Ether funds had gone down from a high of US$23 billion in November 2021 to US$8.7 billion.<\/p>\n\n\n\n

Notably, it seems that institutional investors sold their BTC and ETH <\/a>products before most of the recent price carnage happened to both assets.<\/p>\n\n\n\n

According to data from CoinGecko, the prices of BTC and ETH fell by 4.7% and 5.9%, respectively, between June 6 and June 10. But since June 11, the prices of BTC and ETH have fallen by about 25.7% and 33.2%, respectively.<\/p>\n\n\n\n

Aside from the outflows of BTC and ETH, there were outflows of $4.7 million from multi-asset funds and a small amount of $200,000 from Short Bitcoin products. Investors also “stayed away from adding to their altcoin positions.”<\/p>\n\n\n\n

\"Institutional<\/figure>\n","protected":false},"excerpt":{"rendered":"

The\u00a0current\u00a0state\u00a0of\u00a0the\u00a0crypto\u00a0market\u00a0has\u00a0sparked\u00a0many\u00a0questions\u00a0and\u00a0assumptions\u00a0with\u00a0CoinShares\u00a0reporting\u00a0that\u00a0almost\u00a0$100M\u00a0has\u00a0left\u00a0US\u00a0crypto\u00a0funds\u00a0in\u00a0anticipation\u00a0of\u00a0hawkish\u00a0monetary\u00a0policy. Coinshares\u00a0claims\u00a0that\u00a0Bitcoin\u00a0 has\u00a0been\u00a0pushed\u00a0into\u00a0“crypto\u00a0winter”\u00a0over\u00a0the\u00a0last\u00a0six\u00a0months,\u00a0asserting\u00a0that\u00a0this\u00a0is\u00a0due\u00a0to\u00a0the\u00a0US\u00a0Federal\u00a0Reserve’s\u00a0increasingly\u00a0hawkish\u00a0rhetoric. Inflation rates in the United States reached 8.6% year on year at the end of May, a level not seen since 1981. As a result, the market expects the Fed to take significant action to bring inflation under control, with some traders predicting three more 0.5 percent rate hikes by October. According […]<\/p>\n","protected":false},"author":13,"featured_media":29815,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29808","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/image-97.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=29808"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29808\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/29815"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=29808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=29808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=29808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}