Key highlights
- Bitcoin rose by 2.6% during London trading hours, trading at around $28.7K after recent bank turmoil.
- The market value of Ether increased by 2.5% to trade at around $1,877.
- Institutional investors are apprehensive about the market, with digital asset investment products experiencing outflows of $72 million, while some altcoins delivered modest inflows despite the overall recession.
Bitcoin rose during London trading hours on Wednesday as investors pondered the recent bank turmoil and appeared to be regaining interest in crypto and other valuable assets.
The largest crypto by market valuation recently traded at around $28,.7K, up around 2.6% over the past day, according to Binance data. BTC’s price rallied early Tuesday morning after shares of two regional banks, Los Angeles-based PacWest Bancorp and Phoenix-based Western Alliance Bank, fell 27% in March and fell 15%., hovering around $28K for most of the past day. Meanwhile, the latest job openings and turnover survey was weaker than expected.
The market value of Ether, the leading altcoin, increased by 2.5% to trade at about $1,877. With the S&P 500 down 1.1% at Tuesday’s close, the stock declined. Both the tech-heavy Nasdaq Composite and the Dow Jones Industrial Average (DJIA) decreased by approximately 1%.
Treasury Bill and government bond yields decrease
The yield on 2-year Treasury Bills, a bond market indicator of expectations for short-term interest rates, decreased 16 basis points to roughly 3.94%. The 10-year government bond yield decreased as well, dropping approximately 14 basis points to 3.42%.
Institutional investors are apprehensive of the market, according to digital asset manager CoinShares, as crypto asset experience significant withdrawals for the second week in a row.
CoinShares warns that institutional investors are abandoning their cryptocurrency holdings due to impending concern about interest rate hikes in its most recent Digital Asset Fund Flows Weekly Report. For the second week in a row, digital asset investment products experienced outflows of $72 million.
Bitcoin biggest outflow
Bitcoin experienced its biggest outflow ever last week with $46 million, while short Bitcoin saw its biggest outflow since December 2022 with $7.8 million
Bitcoin bore the brunt of the outflow. However, CoinShares also noted that short BTC investment products were also leaked for the first time this year. Ethereum products have suffered a similar fate. At net inflows, it is still the winner in terms of year-to-date inflows.
Ethereum also took a hit, seeing a total outflow of $19 million last week, its biggest outflow week since its merger in September 2022.”
Despite the massive outflow of the top cryptocurrencies by market capitalization, some altcoins bucked the trend and delivered modest inflows despite the overall recession. Institutional investors Solana, Algorand, and Polygon generated inflows of $200,000, $170,000, and $140,000 respectively.
