Investors are feeling confident that bitcoin may have bottomed out after five months of steep losses.
Cash inflows to cryptocurrency funds turned green in May, according to CryptoCompare.
Weekly average inflows hit $66.5 million last month, a reversal from $49.6 million in outflows in April, Reuters reported.
Investors are starting to show renewed signs of confidence in cryptocurrencies, signaling the crypto market may have hit a bottom.
Cryptocurrency funds saw weekly average inflows of $66.5 million in May, compared to a weekly average outflows of $49.6 million in April, according to CryptoCompare data cited by Reuters.
And Kraken Intelligence has found that the assets under management of some cryptocurrency exchange-traded funds have climbed over the past seven days, with the popular ProShares bitcoin ETF rising 6%.
Meanwhile, global bitcoin holdings in exchange-traded products hit an all-time high of 205,008 bitcoin in early June, Norway-based crypto research firm Arcane Research told Reuters.
“It’s largely institutional, and to a degree retail investors, recognizing that the pain is already endured, and we’re closer to the bottom than we are to the top,” Ben McMillan, chief investment officer of Arizona-based IDX Digital Assets, told Reuters.
The latest influx of cash comes as bitcoin, the largest cryptocurrency by market capitalization, is down 38% from the start of 2022. Bitcoin has struggled to find support above $30,000, which is more than half of its all-time high of $69,000 reached in November 2021. Bitcoin was trading lower Tuesday, down nearly 6%.
Cryptos have reacted negatively to tightening from the Federal Reserve and Russia’s invasion of Ukraine, mostly in line with traditional markets experiencing turbulence.
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