Elon Musk – the Tesla CEO – has hinted towards abandoning Bitcoin as a mode of payment for his Tesla cars. The CEO has turned against the king of the market because of the environmental costs it is said to have. The billionaire CEO has been an ardent supporter of Bitcoin and other cryptocurrencies and because of the huge following he has; he also holds immense power over the market.
Elon Musk has caused a market crash that is considered to be the beginning of the dreaded market corrections that are considered to be looming close. The crypto market crashed nearly 10% following the tweets of Elon Musk. The market appears to be gaining back some momentum but Bitcoin has taken a hard hit.
Bitcoin (BTC) considered the king of the market has lost 10% of its dominance. Bitcoin dropped to a record low dominance of 40% since the 2018 market crash. Some altcoins are thriving regardless of the brutal market corrections going on –indicating a shift in trend from Bitcoin to newer cryptocurrencies.
CoinShare’s weekly Digital Asset Flow report shows a staggering drop in Bitcoin Investment. Institutional investors have offloaded $100 million from Bitcoin exposure. The outflow of $100 million is considered the largest in the history of the report.
The $100 million exiting Bitcoin investment products equal 0.2% of assets under management which may not seem as much but given the market sentiment, it could warrant even more losses in the market.
The digital asset flow report also found a shift towards altcoins. Excluding Bitcoin, cryptocurrencies saw an inflow of $48 million in investment. Ethereum accounted for 50% of the inflows while Cardano and Polkadot also saw increased inflows. The data is indicative of investors looking to diversify their portfolios and move away from Bitcoin.