Sovereign Wealth Funds Bought Bitcoin as Retail Pulled Back: Coinbase Exec
Institutional interest in Bitcoin increased in April, with significant investments from sovereign wealth funds and long-term capital pools, despite retail investors withdrawing funds. Bitcoin ETFs experienced net outflows of approximately $470 million. The price of Bitcoin rose about 13% during the month, reaching around $92,800. Key factors influencing institutional behavior include de-dollarization, a shift away from Bitcoin's previous correlation with tech stocks, and its perception as a long-term inflation hedge. Bitcoin's recent performance diverged from equities, raising discussions about its potential as a safe haven asset. Analysts caution against overinterpreting short-term price movements, noting Bitcoin's inherent risks amid economic uncertainties.
