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10x Research: Institutional Investors are Injecting New Funds into the Cryptocurrency Market

10x Research: Institutional Investors are Injecting New Funds into the Cryptocurrency Market

Bitget2024/08/14 00:39

Markus Thielen, the founder of 10x Research, stated in his latest report that monitoring and analyzing the flow of funds in cryptocurrencies is crucial for assessing the market environment faced by Bitcoin and other cryptocurrencies. These market conditions could either be tailwinds or headwinds. Traders often find themselves unprepared when prices plummet, overlooking key signals provided by these fund flows. However, the reverse also holds true; a continuous increase in fund flows can push up prices, but many people miss these indicators.

Given that broad money flow essentially stagnated at the beginning of April 2024, subsequent price adjustments were expected. However, as the market approached its bottom, some recovery in fund flows helped boost prices. The key factor lies in monitoring the sustainability of these fund flows because without sustained support, upward momentum tends to weaken.

Last night Tether minted $1 billion USDT which appears more like inventory accumulation rather than immediate issuance as detailedly described by 10x Research's book "Cryptocurrency Titans: How Trillions are Born and Disappear on Cryptocurrency Markets". However earlier last week Tether and Circle issued nearly $2.8 billion combined indicating some institutional investors are injecting new funds into cryptocurrency markets. If this issuance trend (not just minting) continues Bitcoin may rise further.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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