The recent crypto market crash has set a heavy toll on investors and organizations with investment funds backed by Bitcoin and crypto again saw inflows last week. While Bitcoin continues its nine-week losing streak, analysts have shown enthusiasm for the near-term outlook for Bitcoin, predicting a bounce in June.
According to data from the crypto research and investment firm CoinShares, regulated crypto-backed firm funds experienced positive results with inflows of $87 million last week. The inflow occurred after the funds saw an outflow of $141 million the week before.
The inflows were the largest in funds backed by Bitcoin, with $69 million invested on a net basis over the week. In contrast, funds backed by Ethereum were the least popular among investors last week, with an outflow of $11.6 million.
Last week’s inflows pushed the year-to-date inflows of all crypto-backed funds to $0.52 billion, which CoinShares claimed was below the $5.9 billion seen around the same time last year.
Despite the significant loss, the year-to-date inflows remain on the positive side, which is encouraging given that Bitcoin has seen negative returns for the year. Additionally, CoinShares indicates that investors are “buying on price weakness.”
Singapore-based crypto trading firm QCP Capital said on Sunday that the market was showing signs of stress based on the performance of the crypto market over the past week. The firm also said that there had been a concerning divergence in price between crypto and stocks, citing S&P 500 and Nasdaq trading about 10% higher since May 20 while Bitcoin and Ethereum have lost ground.
Antoni Trenchev, co-founder and Managing Partner of crypto lender Nexo, spoke to Bloomberg, saying:
“This is the type of de-correlation nobody wanted. Bitcoin has yet to test its sub-USD 26,000 on May 12 lows. One senses that it’s only a matter of time, given Bitcoin’s failure to mirror the Nasdaq’s gains in the past week.”
Other analysts had a more enthusiastic outlook on the market, including Benjamin Cowen. Cowen is an analyst and trader known for his ‘lengthening cycles’ theory for the Bitcoin price. In a video update, he pointed out that the Bitcoin chart has printed nine consecutive weeks of red candles, the most ever for the asset. This gives him reason to believe that a bounce is likely to occur.
As of this writing, Bitcoin is traded at $31,543.80, going up 3.16% in the last 24 hours.