Institutional Appetite Soars as $35 Billion Flow To Crypto Assets — Major Rally Ahead?

The crypto market has recorded a huge boost in recent weeks, spearheaded by massive institutional inflows. Bitcoin (BTC) leads the pack as bulls strengthen positions ahead of another upward swing. Meanwhile, altcoins have also attracted demand, driving up the total market capitalization. 

Crypto Whales Ramp Up Holdings 

On-chain data shows a surge in investment in the last three weeks following the White House’s pause on country-based tariffs. Crypto enthusiast Ali Martinez wrote on X that total market inflows surpassed $35 billion, signaling a fresh wave of growth. This comes after flat movements from most crypto assets, underscored by the price dip. 

In the same period, crypto funds flipped outflows recording billions in new flows. Last week, traders saw $882 million inflows taking total yearly numbers above $6.7 billion. A significant milestone was spot Bitcoin ETFs accumulating over $62.9 billion since approval in the United States. These funds reshaped institutional dominance in crypto assets. 

“Bitcoin dominated inflows, attracting US$867m globally last week. It also reached a new milestone, as US-listed ETFs recorded cumulative net inflows of US$62.9bn since their launch in January 2024, surpassing the previous high of US$61.6bn set in early February,” CoinShares wrote. 

Crypto whales have also become mega bullish on Bitcoin with recent purchases and centralized exchange outflows. Over the past month, Binance whale address balances dropped from $5 billion to $3 billion. In contrast, retail volumes spiked, with traders doubling down on profit taking. Digital asset analyst Darkfrost explained that this shift in sentiments shows bulls’ projections of the market direction.

BTC Traders Project Price Jump

Bulls have set their sights on a new price run after Bitcoin regained the $100k mark, which had a lingering effect on altcoin prices. This is hinged on a positive outlook from global institutional and market players. On May 14, Standard Chartered announced a partnership with crypto prime broker FalconX to integrate its banking infrastructure.

Major partnerships fuel institutional demand, attracting more capital. In return, crypto prices record major growth, particularly Bitcoin and top altcoins. The market direction can be gauged by using BTC miners’ reserves. On-chain data shows miners have halted asset sales since the recent price surge. Per Glassnode data, miners’ wallets held 1,794,330 on May 13. Most market analysts saw this as an extremely bullish sign for the asset.