Institutional investors’ interest in Ишесщшт dried up and even turned negative after the May correction. This was announced by JPMorgan strategist Nikolaos Panigirtzoglou during the interview with CNBC.
He stressed that analysts recorded a gradual decrease in the flow of funds of large investors in bitcoin products back in April 2021. Even then, some institutions began to withdraw money from the market, the analyst added.
“Institutional interest in Bitcoin and other cryptocurrencies dried up and even turned negative in May 2021. At present, it is probably closer to flat,” Panigirtzoglou said.
Also in April, the flow of investor funds from digital gold to altcoins, in particular Ethereum, began. Now, according to him, the situation has reversed.
However, the inflow of institutional funds into Bitcoin is significantly lower than that observed in the fourth quarter of 2020, and in general, the market is in a bearish phase, Panigirtzoglu noted. One of the indicators of exit from it, he considers the growth of the market share of bitcoin above 50%. At the time of writing, the dominance of the flagship is 44.8%, according to CoinGecko.
Commenting on the price volatility of the first cryptocurrency, the analyst said he expects it to stabilize in the coming weeks.