Short-Bitcoin Inflows Rise to $10M As Market Volatility Piles On

Sahana Kiran
Source – Unsplash

With Bitcoin [BTC] surging to a high of $25,000, the entire community was vouching for the king coin to hit $30K. However, the asset has been struggling to push past this level due to the strong resistance at this level. One of the reasons could be the rising short-Bitcoin inflows.

According to CoinShares, a crypto asset manager, weekly short inflows witnessed a major surge over the last week. The report highlighted that short funds had inflows of a whopping $10 million. Outflows, on the other hand, were at $12 million for the third consecutive week. However, this sentiment was limited to the United States. Elaborating on the same, CoinShares wrote,

“….this negative sentiment was solely from the US. We believe this reaction reflects nervousness amongst US investors prompted by the recent stronger than expected macro data releases, but also highlights its sensitivity to the regulatory crackdown in the US.”

Shorts are usually a bearish indication as investors are usually betting on a price drop. With increased short inflows, the wider market sentiment seems to be bearish.

Additionally, at press time, Bitcoin was trading for $23,416.05 with a 0.88% daily surge. The asset was struggling to reclaim the $24,000 zone. As a result, Bitcoin could take longer to move towards $30K.

Is BTC to $30K still a short-term target?

With an increased number of traders shorting Bitcoin, the overall sentiment was bearish. However, analysts on Twitter continued to endorse the “Bitcoin to $30K” narrative.

Mike McGlone, senior macro strategist at Bloomberg Intelligence also jumped onto the bandwagon. McGlone further took to Twitter and elaborated on the asset’s latest level. He said,

“Headwinds Remain Strong; Markets Have Bounced-“Don’t fight the #Fed” was the dominant headwind for markets in 2022, and remains so in 1Q. #Bitcoin $25,000 resistance may prove significant for all risk assets”