- Institutional investors are buying the Bitcoin dip.
- Analysts say now is a good time to get into BTC.
- Bitcoin price can drop lower to reach its average bear market correction level.
Last week saw the highest amount of inflows into cryptocurrency investment products since the beginning of March, when $42 million was invested, per the Digital Asset Fund Flows data published by CoinShares. The firm wrote that the inflows started later in the week after the prices of cryptocurrencies fell because of FTX’s liquidity crisis.
“It suggests that investors see this price weakness as an opportunity, differentiating between trusted third parties and an inherently trustless system,” the firm added.
Investment flows into products related to Bitcoin (BTC) reached $18.8 million last week, while flows into products providing investors with exposure to Ethereum touched $2.5 million. $12.6 million flowed into products betting against BTC, suggesting some institutional players are betting against the flagship cryptocurrency.
Some analysts have turned bullish in unison with Institutional investors. According to Emma Newbery, now is a good time to buy Bitcoin as the flagship crypto’s price has hit a two-year low, but investors must do so cautiously.
According to Newbery’s recent article, there are chances that other crypto institutions could collapse following FTX. The analyst also warned that current events could spark a cascading effect on the market. As such, the analyst pitched the idea of looking into projects Alameda research was invested in and steering clear.
“When one crypto institution fails, it has a ripple effect onto other platforms and projects. In this case, pay attention to the projects where Alameda Research has invested heavily. These include Solana (SOL) and 1inch Network (1INCH).“
Similar sentiments were voiced by Pseudonymous analyst Rekt Capital, noting that Bitcoin usually tends to “bottom around a year after its previous Bull Market peak”, and as of now, it’s been a year since 2021’s November high.
“If there ever was a time to pay attention to the market to position yourself for maximum Return On Investment. It is now,” he added. However, in a follow-up tweet, the analyst added that BTC has retraced 78% so far and still has room to drop “another 35%” to reach its historical average bear market correction level.