February 5, 2023

Institutional investors are betting on the fall of Bitcoin

Since the beginning of the year, Bitcoin has grown by 39%, which is perceived by some market participants as a sign of the end of the bearish cycle, while others rush to increase sales untilthe coin did not fall again. In the last article, we talked about miners who are getting rid of inventory at a record speed. A pessimistic assessment is also shared by institutional investors.
Institutional investors are betting on the fall of Bitcoin

Image Source: coinshares.com

Last week, cryptocurrency funds experiencedan inflow of investments of $37 million, of which $25.5 million fell on short positions, when profit is formed when the asset value falls. Last week, institutional investors invested only $5.7 million in the growth of Bitcoin. If we talk about the geographical division, the most strongly bearish sentiment was demonstrated by American investors with a 95% prevalence.
Institutional investors are betting on the fall of Bitcoin

Image Source: coinshares.com

As opposed to miners and institutionals, retail traders are trying to buy cryptocurrency at the lowest possible price.
Institutional investors are betting on the fall of Bitcoin

Image Source: Cryptocurrency Exchange StormGain

This was reflected in the growth of the funding rate to a record level for the last eight months. The rate rises with the prevalence of bulls over bears in futures trading.
Institutional investors are betting on the fall of Bitcoin

Image source: lookintobitcoin.com

Hope has the right to life, because a number ofnetwork indicators indicate a great similarity of bearish cycles with a potential transition to a new phase of growth. Thus, the indicator of percentage supply in profit over the past two weeks jumped from 55% to 67% (a difference of 12%). In past bearish cycles, a similar surge has preceded a market upturn.
Institutional investors are betting on the fall of Bitcoin

Image source: glassnode.com

However, the probability of maintaining the January dynamicsremains low due to the aggravated macroeconomic environment and the continued decline in liquidity in the financial markets. It is these circumstances that encourage large players to play for a fall.

Analytical group StormGain

(platform for trading, exchanging and storing cryptocurrency)