$BTC US institutions out of cash? Is that the reason for the decline? Today's sudden continuous drop is not just in stocks and cryptocurrencies—gold and silver are also falling, and the dollar is declining too. My first thought was whether institutions are exiting the market. Then I wondered what could be causing their exit. It then occurred to me that institutions probably don't have much cash left.
Last week we looked at global fund manager allocations and saw that cash allocation hit a historic low of 3.2%. This indicates that the cash in fund managers' hands is no longer sufficient to continue pushing the market up. We also saw substantial data showing that the main buyers of ETFs currently should be retail investors. This means retail investors have become the "bag holders" for institutions. This logic holds up.
$BTC US institutions out of cash? Is that the reason for the decline? Today's sudden continuous drop is not just in stocks and cryptocurrencies—gold and silver are also falling, and the dollar is declining too. My first thought was whether institutions are exiting the market. Then I wondered what could be causing their exit. It then occurred to me that institutions probably don't have much cash left.
Last week we looked at global fund manager allocations and saw that cash allocation hit a historic low of 3.2%. This indicates that the cash in fund managers' hands is no longer sufficient to continue pushing the market up. We also saw substantial data showing that the main buyers of ETFs currently should be retail investors. This means retail investors have become the "bag holders" for institutions. This logic holds up.