Institutional investors have oscillated between bearish and bullish when it comes to bitcoin for the better part of the year. Every so often though, the direction of their money always shows how they are currently viewing the crypto market. Same is the case with last week, where numbers are pointing towards more bullishness for these big investors.
Short bitcoin outflow continues
Short bitcoin since the market started its recovery trend watching the outflow, The ETF was quite popular and successful when it was launched earlier this year, given the exact timing of launch when the cryptocurrency was introduced. However, outflow data shows that institutional investors are gradually giving up their bearish stance on digital assets.
Last week came with an outflow of $15 million for short bitcoin, representing 10% of the total assets under management (AUM) at the time. Last week marked the second week in a row for the fund with $2.4 million in outflows, bringing its total outflows since September to $20 million. This figure now represents 15% of the AUM for the fund from mid-September to the present.
BTC price fails to hold $20,500 | Source: BTCUSD on TradingView.com
As expected, the opposite was the case for bitcoin long which saw an inflow of $14 million last week. The digital asset saw a record $4.6 million inflow over the past week. Even though these inflows remain modest, it proves that institutional investors have remained bullish. This has now marked the seventh consecutive week of influx.
Behind the Bullishness
The general sentiment behind bitcoin has been stronger than ever and the Twitter deal with Elon Musk has been a major driver behind it. The billionaire is a staunch supporter of cryptocurrencies, which has led many to believe that he will promote the use of bitcoin and other digital assets on the platform.
After the completion of the deal, the value of the cryptocurrency has skyrocketed in the meantime. Bitcoin was able to retest $21,000 for the first time in over a month. Naturally, other assets in the space have followed the trend.
However, the positive sentiment eased slightly as the Fed awaits a decision. Another interest rate hike will undoubtedly be detrimental to the crypto market, forcing investors to take a defensive position as the market awaits the Fed’s statement.
Featured image from Blockchain News, chart from TradingView.com
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