Massive $690M Sell-Off! Institutions Dump Bitcoin & Ethereum for Altcoins

Published by

Vignesh S G

June 24, 2024

Big money is fleeing Bitcoin and Ethereum! Is this the end of the crypto bull run? Institutional investors have dumped $690 million in these major coins within a week, spooking some analysts. But wait, there’s more! While Bitcoin and Ethereum are feeling the heat, altcoins like Solana are seeing a surge in interest.

Read on to find out what the experts are saying and what it means for your crypto investments.

Significant Outflows in Digital Asset Investments

In the past two weeks, digital asset investment products have seen a substantial $1.2 billion in outflows, according to CoinShares. Within a single week, $484 million was withdrawn, mainly from the United States ($475 million) and Canada ($109 million). However, Switzerland and Brazil saw positive inflows of $39 million and $48.5 million, respectively.

While Bitcoin and Ethereum faced heavy selling, altcoins such as Solana have become more popular. Solana saw $2.7 million in inflows over the week. Currently trading at $127.85, Solana (SOL) has experienced a 4.7% decline in the past 24 hours but a slight increase of 0.6% in the last hour. At the start of June 2024, Solana was priced around $166.14, peaking at $173.18 on June 4 before gradually weakening.

Impact on Bitcoin and Ethereum Prices

The significant sell-off has affected Bitcoin and Ethereum prices, pushing Bitcoin below $61,000 and Ethereum under $3,300, each dropping nearly 5% in the last 24 hours. According to CoinShares’ analysis, these outflows might indicate a correction in the crypto market as institutional investors adjust their holdings, reflecting doubts about potential interest rate cuts by the US Federal Reserve this year.

The recent shift in institutional investor behavior highlights a growing preference for altcoins amid a bearish stance on Bitcoin and Ethereum. This trend indicates changing dynamics in the cryptocurrency market, suggesting a more diverse investment landscape ahead.

The crypto market is never dull. What are your predictions for the future?

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.