Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the jetpack domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/feedavenue.com/public_html/wp-includes/functions.php on line 6114
Institutional Investors Remain Bearish As Short Bitcoin Sees Record Inflows - Feedavenue
Wednesday, January 1, 2025
HomeBusinessCryptocurrencyInstitutional Investors Remain Bearish As Short Bitcoin Sees Record Inflows

Institutional Investors Remain Bearish As Short Bitcoin Sees Record Inflows

Date:

Related stories

The Chess World’s Latest Controversy Is All About Jeans

The chess world is never short on scandals,...

Detox Cabbage Soup | The Recipe Critic

This website may contain affiliate links and advertising...

13 Best Toners for Blonde Hair 2025, According to Colorists

Editor’s tip: A signature ingredient for MoroccanOil, argan...
spot_imgspot_img


Bearish sentiment toward Bitcoin among institutional investors has been gaining ground in recent months. This was propelled even further by the crash that rocked the digital asset back in mid-June. Since then, bitcoin has struggled to keep its head above the $20,000 level, and as it continues to fail, bearish sentiment has grown rampant. This is evident in the short bitcoin inflows that were recorded for last week.

Record Numbers For Short Bitcoin

The latest CoinShares report has shown that institutional investors are only investing in bitcoin for the short term, and what’s more, they believe that the digital asset is set to decline more. It shows that inflows into the short bitcoin ETFs had hit their highest point since its inception with $51 million for the previous week.

Related Reading | Mounting Support For Bitcoin At $19,000 As Market Ushers In A New Week

The ProShares short BTC ETF is the latest in line for these types, and while it had seen significant inflows for the prior week, it was chalked up to the fact that the ETF had just launched. However, last week has put into perspective how institutional investors are viewing bitcoin going forward.

To put this in perspective, while inflows for short bitcoin had come out to $51 million for the 7-day period, bitcoin had only recorded $0.6 million in inflows. The digital asset had narrowly missed recording another week of outflows with one of the lowest inflows ever recorded.

Bitcoin price chart from TradingView.com

BTC falls to $19,500 | Source: BTCUSD on TradingView.com

Compared to the prior week’s inflows of $15 million, the inflow into short bitcoin had grown a total of 240%. It is one of the most obvious indicators that institutional investors do not expect the price of bitcoin to recover anytime soon.

Institutional Investors On Altcoins

The bearish sentiment on bitcoin on the part of these institutional investors has been relegated to bitcoin only. The CoinShares report shows that altcoins had seen continued inflows. Ethereum which had suffered almost three months of outflows had recorded its second consecutive week of inflows with a total of $5 million. 

Other altcoins such as Solana, Polkadot, and Cardano, all competitors for Ethereum, also recorded inflows. Their figures came out to $1 million, $0.7 million, and $0.6 million respectively for last week. This indicates that institutional investors are forecasting a better future for these assets compared to bitcoin. 

Related Reading | Active Ethereum Addresses Touch 2020 Levels, Will Price Follow?

The Multi-asset investment products were not left out. A total of $4.4 million flowed into them and it has continued to hold its ground even through the bear market, with only 2 weeks of inflows recorded in the space of six months.

One noteworthy thing is that the bearish sentiment seems to be more prominent in institutional investors in the United States. Other regions had recorded better inflow numbers into long investment products which had come out to $20 million for the week. 

The report notes that this may be due to the fact that short bitcoin ETFs had become available in the US for the first time. Hence, investors are rushing to take advantage of the new fund.

Featured image from BTCC, chart from TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…





Source link

Latest stories

spot_img