Bitcoin Bounces Back from $58,000 Amid Pause in Institutional Buying

Bitcoin Rebounds from $58,000 Amid Stall in Institutional Buying

The price of Bitcoin (BTC) fell below $58,000 on Monday morning as institutional investors paused their buying frenzy. The broader cryptocurrency market also fell. Ethereum (ETH) fell 4.6% to $2,570, Solana (SOL) fell 8% to $145, BNB (BNB) fell 5.5% and Toncoin (TON) fell nearly 6%.

Despite this, CoinShares data suggests investors viewed the decline as a buying opportunity. CoinShares reported $176 million in inflows into digital asset products as investors took advantage of the price decline. Total assets under management (AUM) for these products rose to $85 billion, recovering from an earlier $20 billion loss due to price recoveries rather than new capital.

Ethereum emerged as a major beneficiary last week, drawing $155 million in inflows as U.S. spot-based ETFs launched. Year-to-date inflows for Ethereum reached $862 million, the highest level since 2021.

Bitcoin initially faced outflows but closed the week with a net inflow of $13 million. Meanwhile, short Bitcoin ETPs experienced their biggest weekly outflow since May 2023, with $16 million withdrawn.

Bitcoin’s outlook remains uncertain. 10x Research suggests that Bitcoin is unlikely to reach new all-time highs anytime soon, with risks tilted more to the downside. CEO Markus Thielen noted a potential shift in Bitcoin’s trading range to between $50,000 and $60,000 as ETF buying dries up.