Institutions bought the dip after this week's decline, wiping about $230 billion from markets and dragging major asset prices to lows not seen in months.

That’s according to the latest report from institutional crypto trading and brokerage firm FalconX, which notes that interest in Bitcoin “remains high” and is trading nearly three times as much as Ethereum, the market’s largest altcoin.

“Institutions are buying the dip,” FalconX said in a series of tweets on Tuesday, referring to buying Bitcoin and Ethereum after prices began to fall sharply on Sunday. “We saw almost all investor groups being net buyers today.”

This includes proprietary trading desks, which accounted for 57% of total buying traffic, hedge funds at 63%, venture capital funds at 61%, and retail aggregators at 72%, according to the tweets.

Crypto investors began dumping their assets en masse on Sunday and Monday amid a broader market sell-off, which led to stock trading halts in Japan and South Korea.

On Monday, the Dow Jones Industrial Average fell 2.6%, the S&P 500 fell 3% and the Nasdaq Composite dropped 3.4%, marking their worst performances since September 2022.

Those declines were largely due to disappointing US jobs data and falling manufacturing activity, raising concerns of a recession.

Crypto has since recovered from Monday’s lows, with Bitcoin rebounding 13% from its drop to $49,900, according to CoinGecko data.

David Lawant, head of research at FalconX, told Decrypt that institutional investors saw the weekend dip as an opportunity to increase their market positions.

“The general sentiment among institutional investors is that, despite the short-term turmoil, the outlook for the asset class remains very positive in the medium to long term,” Lawant said.

The head of research pointed out that the institutional buy/sell ratio last week dropped below 50%, meaning there were more sellers than buyers based on total buy traffic as a percentage of total traffic posted in previous weeks.

To put that into context, last week's drop below 50% was one of two outliers for Bitcoin in a span of nearly two months. The other time it happened was around July 1, according to the chart accompanying the tweets.

“Today’s numbers are much higher,” Lawant said. “Institutions buying the dip has become a clear trend in this correction.”


Source: https://tapchibitcoin.io/cac-to-chuc-buy-the-dip-sau-dot-suy-giam-thi-truong-crypto.html