• Smart money investors have been pouring billions into the crypto market, boosting development of certain protocols and projects.
• The 2021 bear market dealt a heavy blow on the pockets of smart money investors with outflows of $2 million each week.
• Short-Bitcoin is up nearly $10 million in inflows showing that investors are incredibly bearish of the long term for Bitcoin and the crypto market as a whole.
The Smart Money Crypto Market
Smart money investors have been pouring billions into the crypto market, boosting development of certain protocols and projects during the 2021 bull market. Don’t miss out on this 150% Welcome Bonus plus 100 Free Spins on your deposit today! However, when 2022 arrived, it brought with it a harsh bear market that has caused major losses for these same smart money investors.
Outflows from Investment Products
CoinShares data reveals an average weekly outflow of $2 million from digital asset investment products, indicating a broad bearish sentiment in the market regarding cryptocurrency investments. Of all assets, Bitcoin saw the biggest outflow both weekly ($12 million) and monthly ($17 million), while Ethereum had only minor outflows in comparison ($200k/week; $1.6 million/month).
Institutional Investors have turned to short products as a way to express their pessimism about the future prospects of Bitcoin and other cryptocurrencies. Short-Bitcoin is up nearly $10 million in inflows which demonstrates how sensitive institutional investors are to regulatory actions regarding crypto assets. This comes at a time when macroeconomic data does not paint an optimistic picture either.
What is Smart Money?
Smart money is defined as investments made by individuals or institutions with significant knowledge, experience, and resources in a particular industry or market who often have access to valuable information that can be used to capitalize on opportunities that may otherwise be overlooked by regular consumers or retail investors.
Overall, CoinShares data shows an overall decrease in interest from smart money investors due to regulatory concerns and weak macroeconomic indicators – something retail investors would do well to keep an eye on moving forward into 2022 and beyond!