Institutional Investors Exit Crypto Market As Price Continues To Decline

The crypto market is facing a turbulent time as it has failed to live up to its once-promising future, and institutional investors are fleeing en masse.

Multiple reports indicate that the crypto market has seen an exodus of institutional funds over the past couple of days. There are signs that the ugly scenario is set to continue if the market fails to turn the tides in due time.

Crypto Investors Leaving Market

The latest data from Coinshare shows that the combined total amount of funds that have been withdrawn from the crypto market owing to the exit of institutional investors in just a month is estimated to be more than $339 million.

Although the market has had a similar inflow at the beginning of the year, Coinshares’ data indicates that this has not been reversed. Because at the start of 2022, the influx is estimated to be roughly $467 million. That is a $128 million difference.

Furthermore, the report shows that Bitcoin’s outflow tops the list with the highest withdrawals of all the top-performing cryptocurrencies. A whopping $133 million left the Bitcoin network last June, and this figure is regarded as the largest single outflow from Bitcoin in a week.

Accordingly, the data affirmed that getting to the root of the issue is difficult due to the nature of the crypto industry, with many people attributing various reasons why the problem arises. However, there are indications that the recent interest hike by the U.S. Federal Reserve is part of why the market has dropped.

Market Decline More Deeper Than Expected

The second-largest cryptocurrency, Ethereum, is not left out of the market exit as institutional investors in the network are reported to have withdrawn about 425 million from the web in the past week.

For emphasis, it means that since the start of the year, Ethereum has witnessed outflows in the past five weeks of 2022, and the total funds combined in this period indicate that the network has spent $194 million.

However, institutional investors appear to favor withdrawing from altcoins, but funds with a wide portfolio experienced significant inflows to reduce the outflow trends.

Another damning piece of data from Coinshare revealed that the total market capitalization of the crypto industry is at its lowest. In the past 24 hours, 12% of the market’s value has been shed, leaving the market cap at $1.8 trillion.

For some time now, Bitcoin has dropped considerably, with the flagship cryptocurrency currently trading below $39,000. Ethereum has been hovering around the $2,800 price mark for some time now.

The majority of the digital tokens have followed the negative trend enveloping the market. The performance of the prominent assets reflects what other lesser coins are experiencing, with many losing a significant part of their value over the past couple of years.

The only silver lining in the market in terms of performance is NEAR, as the asset has spiked by 2.7% in the last 24 hours.