As BTC's losing streak of 9 weeks continued, investment funds that are backed by crypto (BTC), and bitcoin saw another week of inflows. Some analysts, however, are optimistic about the near-term outlook of bitcoin, and predict a "bounce" to its upside in June.
Data from CoinShares, the cryptocurrency research and investment firm, revealed that regulated crypto-backed funds saw an inflow of USD 87m last Wednesday, following outflows USD 141m the previous week.
With USD 69m net invested over the week, funds backed bitcoin saw the largest inflows. Last week's inflows from funds backed by Ethereum (ETH) were the least popular with investors, with USD 11.6m going out.
CoinShares stated that the inflows from last week have pushed the year to-date inflows into all crypto-backed funds up to USD 0.52bn. This is well below the USD 5.9bn seen last year.
MTD – month-to date; YTD = year-todate; AUM is assets under management. Source: CoinShares
The performance of the crypto market over the past week is remarkable, but before BTC's acceleration today, QCP Capital, a Singapore-based crypto trading company, stated in an update on Sunday that the market "showing signs" of stress.
The report stated that there was a "concerning divergence" in the price of crypto and stocks. Since May 20, S&P 500 and Nasdaq traded about 10% higher, while BTC has lost ground and ETH has fallen over the same time period.
"This is the kind of de-correlation no one wanted. Bitcoin has yet not tested its May 12 lows of sub-USD 26,000. It's possible that it will happen soon, considering bitcoin's recent failure to match the Nasdaq gains over the past week," Antoni Trenchev (Co-founder and Managing Partner at crypto lender Nexo) told Bloomberg.
However, other analysts had a positive outlook for the market in the near-term.
Benjamin Cowen, an analyst/trader who is known for his "lengthening cycles" theory regarding the bitcoin price, was among those that were bullish on bitcoin in June. Cowen updated the video by pointing out that the bitcoin chart now has 9 consecutive weekly red candles, which is the highest number of such red candles ever recorded for the asset.