Declining outflows across bitcoin short products may indicate that fundamentals are improving as opportunistic investors rush to buy dips.
Meanwhile, digital asset investment products (consisting mostly of short products) saw total outflows of $7.5 million, while long products recorded $3.3 million.
Despite weeks of devastated capitulation caused by the collapse of FTX and negative sentiment on Bitcoin, BTC investment products saw a total inflow of $11 million. shows an improvement in sentiment around
According to Coinshares data, Solana and Polygon recorded total inflows of $200,000 and $300,000 respectively, while Litecoin and Polkadot recorded total outflows of $900,000 and $400,000 respectively.
Unfortunately, Ethereum data showed a sizeable outflow ($4 million) for the third week in a row.
The data also recorded inflows in key regions, with Canada leading with $12 million, followed by Germany with $3.2 million. The United States, on the other hand, recorded the largest outflow totaling $15 million, of which approximately 75% consisted of short-sold investment products.
The decline in outflow across Bitcoin short products is a good sign that investors are accumulating more digital assets over the long term rather than looking for short opportunities. When there is a shortage of , they are betting that the price of Bitcoin will fall further.
As of this writing, BTC is trading at $16,950 and is struggling to break the pivot resistance at $17,494. This shows that Bitcoin is already plummeting, and a break below the current price could indicate an imminent bottom.According to last time report According to CryptoSlate, the aSOPR indicator has flashed a new Bitcoin bottom alert.