Bitcoins-backed (BTC) and crypto-backed investment funds once again saw entries last week as BTC extended a 9-week losing streak. At the same time, some analysts are being positive about the short-term outlook for bitcoin in particular, predicting an upward “rebound” in June.
According to data from the cryptographic research and investment company CoinSharescryptocurrency-backed regulated funds recorded $ 87 million in revenue last week, after seeing $ 141 million in outflows the previous week.
Income flows were by far the largest in bitcoin-backed funds, with $ 69 million invested in a net base during the week. Ethereum-backed (ETH) funds, meanwhile, turned out to be the least popular among investors last week, with $ 11.6 million.
Last week’s entries brought this year’s entries to date to all cryptocurrency-backed funds at $ 0.52 million, which CoinShares said is “well below” the $ 5.9 million seen in same time last year.
Still, the fact that year-to-date entries remain on the positive side is “encouraging” as BTC has yielded negative returns during the year and indicates that investors “are buying because of weak prices,” CoinShares said.
Looking at the performance of the cryptocurrency market itself over the past week, before BTC accelerated today, the Singapore-based cryptocurrency trading company QCP Capital said in an update on Sunday that the market is “showing signs of stress.”
He added that there was a “worrying” price divergence between crypto and stocks, with the S&P 500 and the Nasdaq trading 10% higher since May 20, while BTC and ETH lost ground over the same period.
“This is the kind of decorrelation that no one wanted. Bitcoin has yet to test its May 12 low of $ 26,000. One senses that it’s only a matter of time, given bitcoin’s failure to reflect Nasdaq gains in the last week. “, Antoni Trenchev, co-founder and managing partner of the cryptocurrency lender. Nexushe told Bloomberg.
Other analysts, however, had a more positive outlook on the market in the short term.
Among bitcoin’s bullish for June was Benjamin Cowen, an analyst and trader known for his theory of “elongation cycles” for the price of bitcoin. In a new video update, Cowen pointed out that the bitcoin chart has now printed 9 consecutive red candles a week, the maximum for the asset.
That, in itself, is reason to believe that “a rebound” is likely to occur, Cowen said.
BTC / USD Weekly Chart:
Among the other reasons given by Cowen for June to be the month we see a relief recovery was that the 90-day moving average of the so-called Crypto Fear & Greed index is “at its lowest ever.”
As a result of the extreme level of fear in the market, a backlash could come soon, Cowen argued.
A low reading in the Crypto Fear & Greed index means that there is a lot of fear among market participants, while a high reading means that greed is the dominant sentiment. At the time of writing, the index was 10, which indicates “extreme fear.”
The same sentiment was repeated by Ki Young Ju, CEO of the cryptographic analytics platform CryptoQuantWHO said on Twitter on Monday that bitcoin “is close to the cyclical bottom”.
Bitcoin UTXOs (outflows of unspent transactions) now account for 62% of Bitcoin’s realized capitalization, the analyst said, adding that “in the grand settlement of March 2020, this indicator also reached 62%.
The realized Bitcoin capitalization is the Bitcoin market capitalization calculated using the BTC price when each UTXO moved for the last time in the blockchain.
Meanwhile, Zhu Su, the co-founder of the cryptocurrency hedge fund Capital of three arrowshinted today that stock market movements could provide a clue about cryptography, with shares of both Microstrategy e Coinbase increasing significantly from its lows.
The rebound is “further proof of the capitulation of American boomers in mid-May,” the cryptocurrency investor wrote.
At the time of writing (14:25 UTC), BTC was trading at USD 30,668, up 4% over the past 24 hours and just over 1% over the past week. At the same time, ETH traded at $ 1,914, an increase of almost 6% during the day, but down almost 7% during the week.
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