Glassnode Co-Founders Say Institutional Money Is Continuing To Buy the Dip
Particularly Bitcoin, with an inflow of over $120 million USD in capital last week.
Glassnode is known in the cryptocurrency space for its leading blockchain analytics. In a recent newsletter, its co-founders Jan Happel and Yann Allemann say that the Bitcoin (BTC) dip is being steadily bought up by institutional money as the asset continues to downtrend.
As #Bitcoin trades down to $24,700, it is now hovering just 5.4% above the Realized Price at $23,430.
This metric reflects the average price of all $BTC in the supply, valued at the time they were last spent on-chain.
— glassnode (@glassnode) June 13, 2022
“What is interesting to observe is that the demand for Bitcoin exposure in traditional markets strengthened. Following Bitcoin’s $69 million inflow noted on (May 30) the capital flows nearly doubled last week as institutional investors bought into weakness at a discount.” According to data provided by Glassnode, the inflow at the time of the statement was approximately $125.9 million USD.
The report shares that venture capital (VC) seems to also be interested in BTC as an alternative risk-on investment during times of weak economic growth. It notes that even with the BTC price behaving like a tech stock, the underlying structure of “an incorruptible, limited asset that is open to every individual is a fundamental diversifier,” and that institutional investors seem to be aware of this.
When comparing the Google search results for the terms “Bitcoin” and “Recession,” Glassnode found that as results have increased for the term recession, they have also increased for the word Bitcoin. With higher query results for BTC than at the end of the 2019 and 2020 bear markets. Drawing a conclusion that this could mean BTC has become a household name synonymous as an alternative investment among risk-on assets.
Elsewhere in Crypto, Coinbase CEO Brian Armstrong says BTC could become the worlds reserve currency.