Institutional investors grabbed coins in the dip after the Chinese FUD

Despite the massive institutional BTC products outflows for many weeks, the last three weeks have witnessed a constant three weeks of inflow. The latest chinese FUD by the Chinese government has helped institutional investors and giant whales grab more and more coins. This led to crypto investment products generating $95 million worth of inflows in the last 7 days.

As per the recent report, “Digital Asset Fund Flows Weekly,” published by CoinShare, the dip adds one more week to the five consecutive weeks of institutional crypto investment product inflow.

There has been an increase of inflows by 126% of $95 million worth on a weekly basis. Bitcoin and Ethereum products alone resulted in $50.2 million and $28.9 million worth of product inflows, respectively.

In the past weeks, BTC investment products have seen a massive amount of outflow for 13 out of 17 weeks, but the recent inflow activity reflects the positive sentiment of the traders. Week-over-week, the inflows have increased by 234%.

It seems like institutional investors are really hungry whenever the market faces any dip. The Solana (SOL), Cardano (ADA), and Polkadot (DOT) brought $3.9 million, $2.6 million, and $2.4 million inflows, respectively. Along with that, multi-asset funds also experienced a massive inflow of $6.4 million in just a week.

The great wall of Chinese FUD

On September 24, the People’s bank of China, the country’s central bank, released a memo banning all cryptocurrencies and declared all the crypto activities in the country illegal. This Chinese FUD resulted in a drop in BTC price by 8%, and all other altcoins also shattered. 

While FUD has historically been affecting the market shortly, it has also sparked the surging price fire. The historical data shows that bulls have always been active just after the crackdown news.

The 2017 Chinese ban followed a 5 times increase in BTC price from $4,000 to $20,000, after which BTC attained its all-time high of 2017.