When Institutions like Microstrategy entered the crypto space, we knew very well that a time will come when these institutions that have poured huge amounts of money into the space will take out profit, which will have negative effects on the market.
Could the recent outflow of funds from Bitcoin happen when the price of Bitcoin was at $65k, we could understand why, but the fact that we are witnessing this huge outflow of funds at a point when the market is unfavorable creates concerns on what could be the cause.
The fact is that we need to be careful because there is more to the present outflow. The data released by Coinshares
has a lot to show about these outflows.
It could be that institutions are cutting their losses or they want to manipulate the market, cause panic and buy the dip to push the market up once again.
Whichever is the case, we need to be careful with our actions. Take your time to decide whether to hodl further or cut your loss. Know the consequences of any of the two options you chose.
There is also concern on how institutions will approach Bitcoin when things return to normalcy. It is possible that they will allocate less funds to it due to its volatility. Already, some of these institutions may be facing some financial implication of introducing Bitcoin to its balance sheet especially due to the dip in the market that has lasted for more than eight months.
In the end, it still boils down to us and what we want for ourselves. Many who were strong enough to withstand the 2018 bear market made a lot of Fortune two years later. This affirms the usual saying that one should invest what he can afford to lose. We hope to see the bleeding lands become fruitful again. We know that it will, it is just that we don't know when.