How the 'Great Wall of FUD' was a buying opportunity for Bitcoin investors


China bans Bitcoin (BTC) — once more, once more, and once more. The truth is, this precise piece of stories has been floating round ceaselessly. Evidently, there have been just a few direct repercussions pre and submit the information.

As an illustration, the bigger cryptocurrency market took successful. Now, how is that this ban completely different from earlier bans? Or did it actually have an effect on the institutional buyers this time round?

Effectively, the easy reply is ‘NO’ since buyers have as an alternative been shopping for the dip on the again of China’s newest FUD. Merely put, buyers see China’s ban as a shopping for alternative:

Cryptocurrency funding merchandise noticed inflows of $95M final week, with whole inflows of $320M over the past six weeks, in response to digital property fund supervisor CoinShares.

This marked a rise of 126% in weekly inflows.

Supply: CoinShares

What do the aforementioned stats imply? In line with CoinShares’ James Butterfill,

“The continued inflows recommend the latest headwinds for digital property, such because the widened China ban, had been seen as shopping for alternatives for buyers.”

Particular person cryptos recorded optimistic stats as effectively.

Bitcoin led with inflows of $50M, with the figures among the many largest of the market’s cryptocurrency investments. This definitely helped the crypto get better by 234% week-over-week inflows, when in comparison with the earlier two quarters.

The timing right here is fascinating, particularly since as coated beforehand, BTC has seen outflows over 13 of the final 17 weeks.

Supply: CoinShares

Ethereum, the market’s greatest altcoin, noticed inflows totaling $29M final week.

“Sentiment has remained comparatively buoyant for Ethereum as the quantity staked to Eth2.0 progresses. By our estimates, 6.6% of Ethereum is staked to Eth2.0, with progress in staking important for investor sentiment, as buyers see it as a possible environmentally various to different proof-of-stake digital property.”

Moreover, different altcoins like Solana, Cardano, and Polkadot additionally noticed small inflows of $3.9M, $2.6M, and $2.4M, respectively. Solana and Polkadot proceed to see “outsized inflows” representing 4.5% and three.2% of property below administration (AUM), Butterfill wrote.

Zooming out a bit, information concerning the harshest China cryptocurrency crackdown initially crashed the market. Nonetheless, Bitcoin managed to get better over the weekend. Simply because it did earlier than.

Fundstrat’s Will McEvoy too shared the same narrative. One among his tweets learn,





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