Bitcoin Short Exposure Surge To New All-Time High

Large institutions have since turned their attention towards shorter-term investment options. Retail sentiment has also been affected by the bitcoin price drop below $30,000 The digital asset is now in an extremely dangerous position. Despite the recent rebound that saw BTC reach $25,000, bearish sentiment remains the norm. This has caused the rise in short-term bitcoin inflows to skyrocket over the past year.

Bitcoin Short Inflows Increase

For a few months, short bitcoin inflows are on the rise. When the ProShares’ short bitcoin ETF had first launched earlier in 2022, it had seen record BTC inflows. The short bitcoin ETF’s interest declined, but it quickly recovered. 

One of the most striking was when bitcoin’s price fell below $21,000 This was a sign of a reverse in bearish sentiment. It has fallen almost to half its high in August. Institutional investors are now looking to short bitcoin as they draw near.

Short bitcoin

The short-term exposure of bitcoin to the market reaches a new height | Source: Arcane Research

With 4,310 BTC being deposited into Proshares BITI on August 29, it reached a record high. It is worth noting that this amount is far below the Proshares ETF’s current BTC-long exposure. Instead, investors are becoming more sceptical about the sudden rise in price over a short time.

This coincided with short bottoms in bitcoin’s price. 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. This was also true on July 13th and 26, when bitcoin reached short bottoms of just below $20,000, and barely above $20,000. The current trend follows historical trends.

Bitcoin price chart from

BTC gains more than $20,000| Source: BTCUSD on

The 4,310 BTC in short-bitcoin ETFs has led to a 70% increase in market capitalization in just two weeks. 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.

It is not surprising, considering the current market trend. It is possible that the crypto market will continue to bear for at most a few more month. However, short exposure to digital currencies such as bitcoin could rise during that period.

Featured image taken from Phemex. Arcane Research charts and charts.

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