Bitcoin's Bearish Reality: Institutional Investors Fleeing Amidst Volatility
The bearish view of Bitcoin held by institutional investors has been growing in recent months. These fears were further exacerbated by the extreme volatility following the market crash.
In recent months, bearish sentiment toward Bitcoin has been growing among institutional investors. This trend was further fueled by the crash that occurred in mid-June. Since then, bitcoin has had a hard time staying above the $20,000 mark, and as it continues to fail to do so, bearish sentiment is becoming rampant. This can be seen in last week's short bitcoin inflows.
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The latest CoinShares report has revealed that institutional investors are only investing in bitcoin for the short term, and furthermore, they expect the digital asset to fall further. The inflows into the short bitcoin ETFs had reached their highest point since its inception with $51 million for the previous week
The ProShares short BTC ETF is the latest of its kind, and while it had seen significant inflows for the prior week, it was chalked up to the fact that the ETF had just launched. But last week has put into perspective how institutional investors are viewing bitcoin going forward.
The total amount of money that flowed into bitcoin over the past seven days was $51 million. That’s a lot more than what went into the short bitcoin market, which saw inflows of only $0.6 million. Bitcoin came close to posting another week of outflows, but it narrowly avoided it with one of its lowest inflow figures ever observed.
Compared to the $15 million of inflows in the previous week, the inflow into short Bitcoin had increased by 240%. It is one of the clearest signs that institutional investors do not expect Bitcoin’s price to recover anytime soon.
The Crypto Market is a Great Place for Institutional Investors to Put Their Money
The bearish sentiment on bitcoin from these institutional investors has been restricted to bitcoin alone. The CoinShares report shows that altcoins have continued to see inflows. Ethereum, which had suffered almost three months of outflows, recorded its second consecutive week of inflows with a total of $5 million since last week's report.
Other altcoins, such as Solana, Polkadot and Cardano, which are competitors to Ethereum also saw inflows. Their figures were $1 million, $0.7 million and $0.6 million respectively for last week. This shows that institutional investors are predicting a brighter future for these assets compared to bitcoin.
The Multi-asset investment products were not left out. In the bear market, they have only seen 2 weeks of inflows in the space of six months and have continued to hold their ground even through it.
A noteworthy aspect is that the bearish sentiment seems to be more prevalent in institutional investors in the United States. Other regions had higher inflows into long products, which came out to $20 million for the week.
The report points out that the introduction of short bitcoin ETFs in the US may have led to investors rushing to invest in them.
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