It's 'The Most Hated Rally,' Market Analyst Says Of Bitcoin, Solana And Avalanche: Here's Why

by Murtuza Merchant Benzinga Staff Writer

Zinger Key Points

Despite recent gains, major institutional investors remain cautious, still not fully engaging in the burgeoning crypto market.
Altcoins like Solana and Avalanche continue to attract attention, while blockchain equities hit record inflows.
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Institutional investors are waiting on the sidelines for more crypto regulations, according to the chief strategy officer of market intelligence firm CoinShares.

Bitcoin BTC/USD has surged over 14% this week and hovering around $44,000, a stark contrast to its position in January.

This upswing, termed by Demirors as the "most hated rally," in an interview with CNBC, comes amidst a backdrop of market disasters, bankruptcies, and regulatory challenges in 2022.

Also Read: SEC May Be Hinting About A Bitcoin ETF - Here Are Clues And Warnings We're Following

"The big traders, the macro desks, they haven't started buying yet," Demirors notes, indicating a significant gap between retail enthusiasm and institutional action.

This hesitance is seen as a cautious approach, waiting for more stability and clarity in the market.

CoinShares' latest research report indicates that there have been inflows totaling $43 million into digital asset investment products, marking the 11th consecutive week of such inflows.

However, there's a notable decline compared to previous weeks.

Regionally, Europe leads with $43 million in inflows, while the U.S. trails with $14 million, half of which is into short positions.

This trend suggests a growing skepticism about the sustainability of the current price rise.

Bitcoin remains the primary focus, with $20 million in inflows, bringing the year-to-date total to $1.7 billion.

Interestingly, Ethereum ETH/USD has reversed its trend, now showing six weeks of inflows totaling $10 million.

The altcoin market, with Solana SOL/USD and Avalanche AVAX/USD, continues to attract investor interest, with inflows of $3 million and $2 million, respectively.

Meanwhile, blockchain equities have seen their largest weekly inflows on record at $126 million, indicating a broadening interest in the crypto-related sector beyond just digital currencies.

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