TL;DR
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‘Digital asset investment products’ (i.e cryptocurrencies) have seen $137M of in-flows over the past week ($742M over the past month).
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Trading volumes have surpassed the yearly average of $1.4B, reaching $2.3B over the past week.
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And while all of this has been happening, money has been flowing out of Bitcoin short positions (aka ‘bets that BTC will fall in price’).
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Despite all of this, crypto prices have stayed relatively flat (overall) for the past two weeks. Eerie ain’t it? Feels like a storm is brewing.
Full Story
You know that ‘calm before the storm’ feeling you get when you’re about to get in trouble with your significant other?
You start noticing a string of pointed silences, one word answers, and a whole bunch of ‘I’m fine’s.
Yeah, well – we’re getting a similar feeling with the crypto market…
Except it isn’t spelling trouble! Quite the opposite.
Here’s what’s fueling it all:
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‘Digital asset investment products’ (i.e cryptocurrencies) have seen $137M of in-flows over the past week ($742M over the past month).
☝️ That’s the most substantial amount of new money entering the market since late 2021 (peak bull run)!
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PLUS! Trading volumes have surpassed the yearly average of $1.4B, reaching $2.3B over the past week.
…why is that a good thing?
Crypto is currently in an uptrend, and high or increasing volume in an uptrend often signals a buying opportunity.
Which often leads to (you guessed it) more buying, and more buying often leads to increased prices.
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And finally – while all of this has been happening, money has been flowing out of Bitcoin short positions (aka ‘bets that BTC will fall in price’).
For context: back in April traders were wagering a total of ~$198M that BTC would go down in price. Last week, that figure bottomed out at ~$55M.
Moral of the story: the market is beginning to think it’s a dumb idea to bet against BTC right now.
Ok, so if volumes are up, short positions are down, and we’re seeing bull run levels of in-flows…then where’s the price action?
We have no idea ¯\_(ツ)_/¯
Despite all of this, crypto prices have stayed relatively flat (overall) for the past two weeks.
Eerie ain’t it?
