- The co-founders of Glassnode, a blockchain analytics firm, highlighted that institutional investors are gobbling up Bitcoin as the asset class continues to show weakness with each passing day.
- The co-founders noted that the venture capitalists (VCs) continue to invest in the crypto space despite a bleak macroeconomic backdrop.
- At the time of writing, Bitcoin was trading at $23,975.60, experiencing a 12.69% decrease in the past 24 hours.
Popular blockchain analytics firm Glassnode’s co-founders highlighted that institutional investors are heavily investing in Bitcoin. While Bitcoin reached its 12-month lowest and 2022-low, $23,975.60, down 12.69% in the past 24 hours.
Jan Happel and Yann Allemann, the glassnode co-founders, noted in the firm’s latest newsletter that weekly crypto inflows reveal that institutional investors are loading up BTC while it continues to fall down.
The co-founders further highlight that the demand for Bitcoin exposure in traditional markets has intensified. Last week the capital flows almost doubled after Bitcoin’s $69 million inflow noted recorded in May 30th, this is because of the fact that institutional investors purchased into weakness at a discount.
The Glassnode co-founders also revealed that while the leading cryptocurrency by market cap might be experiencing weaker demand from long-term holders in addition to the selling pressure from short-term holders, it is still faring better than altcoins considering the on-going market sentiment. As investors search for a safe spot amidst the ongoing fear-induced market, Bitcoin has surpassed altcoins.
The co-founders also revealed that the venture capitalists (VCs) are still investing their capital into the crypto space even though there seems to be a bleak macroeconomic backdrop.
The newsletter noted that a similar demand was seen in the VC market with year-to-date capital raised is at 63% of 2020($19.7 billion vs. $31.2 billion). The increased VC interest has led to the narrative of Bitcoin and crypto as an alternative risk-on investment class amid the dwindling economic growth. This is also having an impact on the highly valued earnings of the S&P 500 and Nasdaq.
The co-founders also stated that it is interesting to note that the BTC price is acting like a tech stock’s price, its unique feature of underlying structure of an incorruptible, limited asset that is accessible for everyone “is a fundamental diversifier for any portfolio and institutional investors seem increasingly aware of this.”
Source: https://www.thecoinrepublic.com/2022/06/13/institutions-embrace-btc-amid-slippage-growing-vc-interest-in-crypto-sphere-glassnode-co-founders/