Bearish Indicator: Bitcoin Short Exposure Surge To New All-Time High
August 31 2022 - 12:00PM
NEWSBTC
Large institutional investors have since been turning their
attention to shorter-term investments. This tracks with retail
sentiment following the price decline of bitcoin from the $30,000
territory. This has put the digital asset in a perilous position,
and despite the recent recovery that saw BTC touch $25,000, bearish
sentiment continues to be the order of the day, causing the inflows
into short bitcoin to balloon over this time. Short Bitcoin Inflows
Grow Short bitcoin inflows have been on the rise for a couple of
months now. When the ProShares’ short bitcoin ETF had first
launched earlier in 2022, it had seen record BTC inflows. Interest
in the short bitcoin ETF had declined after this but quickly picked
up once more. Related Reading: Why Is Shiba Inu’s $BONE On
The Rise And Is It Time To Get In? The most notable of these had
been when the price of bitcoin had fallen below $21,000. It had
declined to almost half of its all-time high back in early August,
showing a reversal in bearish sentiment. However, as the month has
drawn to a close, institutional investors have turned their gaze
towards shorting bitcoin one more. Short BTC exposure reaches new
high | Source: Arcane Research Inflows into the Proshares BITI
pushed it to a new all-time high with 4,310 BTC recorded on August
29th. Now, it is important to note that this is nowhere near the
current BTC long exposure for the Proshares ETF. Rather, the rapid
climb in this short period of time points to worsening sentiment
among investors. These spikes have also coincided with the short
bottoms that the price of bitcoin has experienced. The first time
had been back on July 1st when exposure had reached 3,811 BTC while
bitcoin’s price had fallen below $20,000. The same was the case on
July 13th and 26th, with bitcoin reaching short bottoms below
$20,000 and just above $20,000. So the current trend is in line
with historical movements. BTC recovers above $20,000 | Source:
BTCUSD on TradingView.com With 4,310 in BTC exposure to short
bitcoin ETFs, it accounts for a 70% growth in the last two weeks
alone. Worsening market sentiment plays a big role in this, with
the Fear & Greed Index currently showing a score of 23, putting
the market in extreme fear. Related Reading: Investor Indifference
Follows Bitcoin’s Break Above $20,000 This is not at all
unexpected, given the recent market trend. The crypto market is
expected to continue its bear trend for at least another few
months, and short exposure to digital assets such as bitcoin is
expected to rise in that time. Featured image from Phemex, charts
from Arcane Research and TradingView.com Follow Best Owie on
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