Last week was all about Elon Musk and the subsequent dump in the price of bitcoin (BTC). Elon Musk tweeted that Tesla would no longer accept bitcoin as a means of payment. What followed was a strong downward price action. In just one day, the price of the largest cryptocurrency fell 16%. Now it turns out that almost $ 100 million has been withdrawn from bitcoin positions by institutional investors.
According to a report by CoinShares on Monday, the largest outflow of bitcoin investments ever took place last week. The amount of $ 98 million equals 0.2% of total assets under management. However, this outflow of institutional money from bitcoin does not mean that it has all disappeared from the entire cryptocurrency markets.
Institutional investors have instead invested large-scale money into other cryptocurrency projects. The same report from CoinShares shows that $ 48 million was reinvested in altcoins. The largest investments were made, unsurprisingly, in Ethereum (ETH). $ 27 million was put into the second largest coin. Cardano (ADA) and Polkadot (DOT) were also the target of investments. $ 6 million was invested in Cardano and $ 3.3 million was invested in Polkadot. Despite these major reinvestments, a net outflow of $ 50 million remains. This is the largest outflow since October 2020.
In fact, CoinShares states that this month could be the first time that institutional investments in ether are greater than investments in bitcoin. CoinShares states that the data suggests that bitcoin investors are rotating to invest more in altcoins. This is in line with the larger trend that has been visible for some time. For example, bitcoin’s market dominance has been declining sharply for some time.