Investors are moving cash back toward cryptocurrency funds, signaling a potential market bottom
- Investors are feeling confident that
bitcoinmay have bottomed out after five months of steep losses.
- Cash inflows to
cryptocurrencyfunds turned green in May, according to CryptoCompare.
Investors are starting to show renewed signs of confidence in cryptocurrencies, signaling the crypto market may have hit a bottom.
Cryptocurrency funds saw weekly average inflows of $66.5 million in May, compared to a weekly average outflows of $49.6 million in April, according to CryptoCompare data cited by Reuters.
And Kraken Intelligence has found that the assets under management of some cryptocurrency exchange-traded funds have climbed over the past seven days, with the popular ProShares bitcoin
Meanwhile, global bitcoin holdings in exchange-traded products hit an all-time high of 205,008 bitcoin in early June, Norway-based crypto research firm Arcane Research told Reuters.
"It's largely institutional, and to a degree retail investors, recognizing that the pain is already endured, and we're closer to the bottom than we are to the top," Ben McMillan, chief investment officer of Arizona-based IDX Digital Assets, told Reuters.
The latest influx of cash comes as bitcoin, the largest cryptocurrency by market capitalization, is down 38% from the start of 2022. Bitcoin has struggled to find support above $30,000, which is more than half of its all-time high of $69,000 reached in November 2021. Bitcoin was trading lower Tuesday, down nearly 6%.
Cryptos have reacted negatively to tightening from the Federal Reserve and Russia's invasion of Ukraine, mostly in line with traditional
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