Institutional Investors Remain Bullish as Short Bitcoin Sees Outflows
Institutional investors have been swinging between bearish and bullish on bitcoin for most of this year. But every time, the direction of their money always shows how they see the crypto market at the moment. The same is the case in the last week, where numbers have pointed towards more bullishness for these big investors.
Short Bitcoin outflows continue
Since the market began its recovery trend, short bitcoin has seen outflows. The ETF had been quite popular and successful when it was launched earlier this year, giving it the perfect timing to be launched as the crypto winter was just beginning. However, outflow figures show that institutional investors are gradually abandoning their bearish stance on the digital asset.
The previous week saw outflows for short bitcoin worth $15 million, which represented 10% of total assets under management (AuM) at the time. Last week marked a second straight week of payouts for the fund with another $2.4 million, bringing its total payouts since September to $20 million. This figure now represents 15% of the assets under management for the fund from mid-September to today.
BTC price fails to hold $20,500 | Source: BTCUSD on TradingView.com
As expected, the opposite was the case with long bitcoin which saw inflows of $14 million for the previous week. The previous week, the digital asset had also seen a record $4.6 million in inflows. Although these inflows remain small, it shows that institutional investors are still very positive. It has now marked its seventh consecutive week of inflows.
Behind Bullishness
The general sentiment behind bitcoin has been more bullish than not, and the Twitter deal with Elon Musk has been a major driver behind this. The billionaire is an ardent supporter of cryptocurrencies, leading many to believe that he would end up promoting the use of bitcoin and other digital assets on the platform.
On the back of the completion of the deal, the value of cryptocurrencies has skyrocketed during this time. Bitcoin had been able to retest $21,000 for the first time in more than a month. Naturally, other assets in the room have followed this trend.
However, there is a slight decrease in the positive sentiment due to the waiting time for the decision from the Fed. Another rate hike will no doubt be detrimental to the crypto market, prompting investors to take defensive positions while the market waits for the Fed’s statement.
Featured image from Blockchain News, chart from TradingView.com
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