Bitcoin [BTC] bears keep the faith as short funds see $10M inflows: Report

ambcrypto.com:

In a new report , digital asset investment firm CoinShares found that the negative sentiments lingering in the digital assets market culminated in a third consecutive week of outflows for Bitcoin [BTC] as investors shifted their attention to short investment products last week. 

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After a sustained surge in cryptocurrency prices at the start of the year, the market has been moving sideways in the last month. This has prompted several investors to sell their holdings to safeguard against significant price drops. Negative sentiments have re-emerged, resulting in BTC experiencing three consecutive weeks of outflows, with $12 million withdrawn.

Coinshares said,

“This negative sentiment was solely from the US.”

It further added:

“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.”

Source: Coinshares

According to Coinshares, last week, investors funneled funds into Short-Bitcoin products. As a result, Short-Bitcoin saw inflows of $10 million last week, bringing its total inflows for February to $14 million. On a year-to-date, Short-Bitcoin products have logged inflows of $48 million. 

A “short” position in financial markets refers to a wager that a particular asset’s price will decrease. Per the report, the fact that the largest inflows logged last week were into short-investment products reflected the general frenzy by US investors who expect BTC’s price to decline further should the Federal Reserve remain hawkish in its approach.

Coinshares noted:

“Opinions remain polarised though, with the US seeing