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Bitcoin and Ethereum, the top two digital assets in the world, were moving with bullish momentum despite slight price corrections seen here and there. However, the prices of both cryptocurrencies have plunged significantly now, somewhat shocking the crypto market.
There has been a 7% decrease in BTC’s price and an 8% decrease in ETH’s price in the last 24 hours. Despite the price drop noted for the two most prominent crypto assets, the year-to-date inflows have been reported. According to the report, the major institutional investors have a positive stance towards digital currencies, even though the prices have certainly taken a hit.
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How Far Have the Prices Dropped and What’s the Status of Inflows?
Both Bitcoin and Ethereum had been doing quite well over the past few weeks as both the digital currencies claimed all-time highs and broke through major resistance levels.
The flagship crypto asset, BTC, is now trading at $61,234 (at the time of writing). This is around 11% lower than its all-time high at $69k, seen six days ago.
Here is a graph by CoinMarketCap showing the price of BTC over the last week.
The prominent altcoin, ETH, is currently trading at $4,360 (at the time of writing) and its price movement over the last week is shown in the graph by CoinMarketCap below.
According to crypto enthusiasts, there was a positive sentiment towards a major price surge seen for Bitcoin by the end of this year. However, this price correction has deflated the expectations.
Crypto analysts, such as Tony Sycamore, believe that the price of the flagship digital asset is yet to plunge, even more, going as low as the $59k price mark next.
Despite the downward momentum of BTC’s price, the inflows seem to be quite bullish. As per reports, the majority of the institutional investments in crypto were taken by Bitcoin investment products last week.
- $98 million of inflows
- $56 billion assets under management (AUM)
Institutional investment inflows seen for the altcoins are as follows:
- $17 million of inflows for ETH investment products
- $21 billion AUM for ETH investment products
- $16 million of inflows for Cardano
- $10 million of inflows for Solana
- $5 million of inflows for Polkadot
Could Bitcoin and Ethereum Recover Soon?
Slight price corrections are generally healthy for the prices of digital assets like Bitcoin and Ethereum. However, a major price drop can cause quite the commotion in the market, as has been done now.
The largest digital currency, Bitcoin, was unable to hold on to the significant support levels and is now expected to be bearish in the short term. Despite the price drop, analysts and enthusiasts do expect BTC and ETH to see price increases soon.
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