2023 has started well for crypto assets, with the price of Bitcoin up 39 percent so far this year.
And as much as $37 million has flown into crypto assets this year, according to data from digital asset manager Coinshares – almost all of it in the past week.
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However, anyone who believes in a clear bullish mood under these circumstances will be wrong.
Because 68 percent of the funds flowed into short investment products, i.e. short sales.
The majority of investors are therefore apparently expecting prices to fall again.
However, according to Coinshares, opinions are very polarized.
In Europe, especially in Germany and Switzerland, there are overall high inflows and outflows from short products.
In contrast, long positions in Hong Kong shrank, while in the US shorting bitcoin accounted for as much as 95 percent of new funds.
Globally, only $5.7 million flowed into bitcoin purchases versus $25.5 million into short sales, the highest weekly inflows since July 2022.
The crypto data provider Amberdata paints a more positive picture.
According to this, the ratio of buy to sell options on Bitcoin on the largest crypto options exchange Deribit has risen to its highest level in more than a year.
At 66 percent, however, there are still more sell orders.
On the other hand, both agree on the development of the trading volume.
Coinshares put this at $1.6 billion, well above the 90-day moving average of $990 million.
Bitcoin accounted for 80 percent.
Amberdata even reports a 375 percent increase in volume from the late December low and the highest since the FTX bust.