Capital flows into cryptocurrency investment products rose again last week, although the pace of growth has slowed since the beginning of the year, possibly marking a local cap on institutional demand.
Net inflows totaled $ 21 million for the week ending March 27, 2021, according to Coinshares, a European digital asset manager. That was the lowest level since October 2020 when Bitcoin (BTC) was trading below $ 14,000.
When will the ‘altcoin season’ happen?
Now, says one analyst as Bitcoin’s dominance hits a 6-month low
Along with low investment volumes, investor appetite for crypto assets appears to have waned. The decline coincided with the lackluster price performance of major assets like Bitcoin and Ethereum (ETH), which have been unable to test new peaks in recent weeks. Daily trading volumes of digital asset products fell to $ 788 million last week compared to $ 900 million for all of 2021.
Institutional participation in cryptocurrencies reaches lowest levels since October