Crypto bank hands governance to institutional investors even as investors continue to pull out

• Anchorage Digital announced it would be involving its institutional clients in the governance process.
• Institutions’ investment has seen a consistent decline for weeks now, focused mainly on Bitcoin.
• Bitcoin price is expected to float above $26,800 but needs to breach $27,500 for recovery.

Institutional investors have always been a key cohort in the crypto space and holds significant influence on Bitcoin price as well as other altcoins’ prices. As their involvement increases, particularlyin making governance decisions, their influence could grow significantly.

Anchorage Digital gives governance power to institutions

Anchorage Digital, on May 16, announced that it would be bringing Snapshot voting to its institutional clients. The crypto bank intends to further its decentralization and increase input from the community. This would allow the bank to generate outcomes that are more faithful to the true consensus. In line with the same, the bank stated,

“For institutional clients, being able to participate in Snapshot voting through Anchorage Digital affords the ability to help shape the future of token projects by participating in guiding them to the best governance decisions.

This is a bold move by the bank given the recent debacle of the banking crisis in the United States, which began with the collapse of crypto bank Silvergate earlier this year.

If this pays off and Anchorage Bank manages to deliver on the proposal, it would be able to draw the attention of many other institutional investors.

However, whether this plays out successfully or not is uncertain, given institutional investors are currently holding back due to unsure market conditions. A CoinShares weekly report noted about $54 million worth of outflows from institutions for the week ending May 14.

Out of this $54 million, nearly 68% of the outflows worth $37.5 million were registered to Bitcoin.

Institutional investors' weekly outflows

This development could have a negative impact on Bitcoin price recovery.

Bitcoin continues to struggle for recovery

Bitcoin price has been moving sideways for nearly a week. Trading at $27,050 at the time of writing, BTC needs to maintain this heading if it hopes to climb back to $30,000.

The Relative Strength Index (RSI) is still in the bearish zone below the neutral line at 50.0 but could note an increase in price if it flips the neutral line into a support floor. At the same time, Moving Average Convergence Divergence (MACD) suggests that there is potential for a recovery rally. 

BTC/USD 1-day chart

This is visible in the receding red bars on the histogram. Regardless, analyst Michael Van de Poppe noted BTC must hold between $26,800 and $27,000 in order to break out and mark a recovery, a breach of $27,500 is necessary.

BTC/USD 4-hour chart

Only then would the biggest digital asset in the world manage to climb back above $30,000 and beyond the 2023 highs of $30,561.