Short Bitcoin Inflows Rise to $10M as Market Volatility Piles On
Recent market volatility has fueled a notable shift in investor sentiment, with short-bitcoin funds experiencing inflows of $10 million during the week ended Feb. 24, according to crypto asset manager CoinShares. This comes despite Bitcoin's overall positive performance in recent weeks. Long-bitcoin funds, in contrast, bled $12 million, marking the third consecutive week of outflows.
Bitcoin (BTC) has remained a dominant force in the crypto market, reflected in significant investment flows. Despite the short-bitcoin interest, data shows Bitcoin led $3.13 billion in weekly crypto inflows, driving year-to-date investments to $37 billion. Some anticipate BTC nearing $100,000 on platforms like Binance, driven in part by institutional interest in ETFs.
The contrasting trends of short-bitcoin inflows alongside broader Bitcoin investment highlight the complex dynamics at play. One factor to consider is the role of short-term holders. Recent data suggests a significant influence of short-term holders in Bitcoin exchange inflows. According to CryptoQuant data, addresses holding BTC for less than three months constituted a large portion of recent exchange activity. However, Data from Glassnode shows that the supply of Bitcoin held by short-term holders has seen a slight decline since its peak in April, dropping from 3.4 million BTC to 3.3 million BTC.
It's important to note that Bitcoin is trading at $20,221, 1% lower than yesterday and an 8% drop over the last week. On the other hand, the global crypto market cap is at $986.22B, a 0.97% increase.
While some in the community were expecting the king coin to hit $30K after Bitcoin surged to a high of $25K, the current market conditions present a mixed picture. Bitcoin Leads Inflows, Short-Bitcoin Products Face Outflows Bitcoin (BTC) remained the star of the show, securing the fifth-largest weekly inflow on record at $1.35 billion. This significant interest underscores the ongoing debate between bullish and bearish perspectives, driving both inflows and outflows across different Bitcoin investment products. On-chain metrics indicate a notable shift in exchange activity, with Tether (USDT) seeing significant outflows while Bitcoin (BTC) inflows into exchanges remain