It’s been just revealed the fact that institutions have let go of $417 million in crypto. Check out the latest report about this below.
Institutional players and crypto
It’s been just reported that the digital assets manager CoinShares says institutional investors are likely being scared away by US monetary policy. This has been happening as the crypto markets suffer outflows for the eighth week in a row.
As the online publication the Daily Hodl notes, in its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that institutional investors sold off $88 million in crypto holdings last week. The same online pubcalition notes the fact that this might possibly be due to interest rates.
“Digital asset investment products saw outflows totaling $88 million, bringing this 8-week run of outflows to $417 million, closing in on the record 12-week run of outflows seen in April to June last year. We believe, like last year, that this is monetary policy related, with currently no clear end in sight to interest rate rises, leaving investors cautious.”
According to the same reports, it seems that CoinShares says that most of the outflows came from North America. This is important, and the fact is suggesting that much of the selling stems from fears on US interest rates.
“87% of the outflows were focused on one provider, accordingly almost all the outflows were North America based. Minor inflows of $9.2 million were seen in Switzerland, while Germany saw outflows of $9.4 million.”
US is entering debt crisis
Billionaire investor Ray Dalio said that the US is already in the latter stages of a debt crisis and predicts that the government will find it difficult to seek enough buyers for newly issued bonds.
In a new Bloomberg interview, he made sure to explain the fact that the reason why there could be a shortage of US debt buyers stems from the fact that institutional investors who bought treasuries a few years ago got burned by the Fed’s rapid interest rate hikes.
