Since the beginning of 2015, institutional investors have been alternating between being bullish or bearish about bitcoin. But, each time the direction of their funds always reflects how they view the crypto market. This is also true for the last week where large investors have seen more evidence of bullishness.
Bitcoin short outflows persist
The market has seen outflows of short bitcoin since its recent recovery. It was very popular and profitable when the ETF was first launched in early this year. This was a perfect time to launch it as the crypto winter was only beginning. Outflow data shows that institutional investors have begun to abandon their negative view of the digital asset.
Inflows of short bitcoin totaling $15 million in the previous week, representing 10% of the total assets under management at that time (AuM), had occurred. The fund saw another $2.4million in outflows last week, making its total outflows from September to $20 millions. This amount now accounts for 15% of AuM that the fund has received from September through the present.
BTC Price fails to Hold $20,500 Source: BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
Long bitcoin saw an inflow of $14 million last week, which was unexpected. Also, the prior week saw inflows exceeding $4.6million. Although these inflows were minor, they prove that institutional investors are very bullish. Now, it has recorded its seventh consecutive week inflows.
The Bullishness That Is Behind It
Bitcoin has seen a more positive sentiment than ever before, and Elon Musk’s Twitter deal has played a significant role in this. He is known for being a strong supporter and advocate of crypto currencies, leading many to think that he might promote bitcoin and other digital assets through the platform.
The deal was completed, and cryptocurrencies’ value has risen dramatically. Bitcoin could retest $21,000 for more than one month. This trend has been replicated by other space assets.
The Fed’s delay in deciding on its policy has caused a slight drop in the positive sentiment. Another interest rate hike would no doubt be detrimental to the crypto market, causing investors to take defensive positions as the market awaits the Fed’s statement.
Featured image taken from Blockchain News. Chart by TradingView.com
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