While the key Bitcoin (BTC) metrics do not paint a pretty picture, the bears could be shorting out. Contrary to analysts warning that Bitcoin could fall as low as $38,000 “before an eventual breakout”, CoinShares and Arcane Research suggest things could be changing.
In short, Bitcoin institutional outflows were negative four of the last five weeks, totaling $55 million. Total assets under management fell to a three-month low of $35 billion in the middle of last week.
The CoinShares results illustrate that large investors in the Bitcoin ecosystem, those using companies like Grayscale, CoinsXBT, ProShares and ETC Group, have been reducing their exposure to the digital asset.
His actions are compounded by the fact that the Fear and Greed Index has hoarded the “extreme fear” level for two months as Bitcoin spot buying volume has hit its lowest level in six months. If the Fear and Greed Index enters a third straight month of extreme fear, it will be the second time it has done so in the metric’s existence.
Operators are also restless. According to Arcane Research, the seven-day average of real BTC trading volume stands at $3.4 billion. It is the lowest figure since July 2021, remembered as the low point of the mini bear market that occurred from May to July 2021.
Investors and viewers of the space will remember that after that moment, from August to October 2021, the price of BTC rose more than 60%, fueled by strong institutional investment.
Furthermore, with 30-day Bitcoin price volatility capped at the lowest level seen for twelve months, at 2.5%, the spring is coiled.
Twitter analysts are clamoring for bullish action. Popular Bitcoin bull @GalaxyBTC He says to his followers that $80,000 is on the horizon, while @Tradermayne says “the bottom has been hit for the umpteenth time.”