Investors exchanged a net worth of $5.8 million (approximately 45 crore) from short Bitcoin funds in the last seven days up to June 17. As reported by CoinShares, this behavior shows a mind The negative sentiment enveloping the crypto industry at the moment, is close to its apex. Short-term Bitcoin funds are a type of investment strategy speculating on an asset falling in value. Currently, with BTC barely sustaining the $20,000 price point (around Rs 15 lakh), investors seem to no longer want to bet on BTC’s upcoming price movements, whether high or low. .
Inflows of up to $39 million (approximately Rs 305) were withdrawn last week. In addition, the value of ‘assets under management (AUM)’ also fell to its lowest level since last February, to $36.3 billion (about Rs 2,84,007), a report by CoinShares said citing the findings of CoinShares.
AUM is the total market value of investments managed by an individual or entity on behalf of a client. In the AUM calculation, financial institutions are known to count the amount of crypto holdings, bank deposits, mutual funds, and cash they own.
Some crypto players are taking advantage of BTC Decline to give investors the opportunity to bet on the Bitcoin drop and increase profits.
This week, ProSharesan issuer of exchange-traded funds (ETFs), said that it will launch a US Bitcoin-linked short-term ETF on June 21. This will allow investors to profit from the a drop in the price of Bitcoin or to hedge their risk on cryptocurrencies.
The price of Bitcoin dropped below $20,000 (about 15.6 lakh) for the first time since December 20, 2021 on June 18, dropping as low as $17,800 (about $13.9) on tomorrow. At the time of publication, the world’s largest cryptocurrency recovered to a price of $21,102 (approximately Rs 16.5 lakh).
These difficult times also highlight the tendency of investors to force them to ‘buy in’. Amid the current bear market, Bitcoin funds have seen inflows hit $28 million (approximately Rs 219) in recent weeks.
The market capitalization of the crypto sector hit over $2 trillion (approximately Rs 15,610,304) around March this year, now at $904 billion (approximately Rs 90,483), according to CoinMarketCap.
The drop has also affected capital inflows into other crypto assets alongside Bitcoin.
Ether-focused fundsfor example, lost about $70 million (about Rs 547) last week, Coindesk noted.
Cryptocurrency is an unregulated digital currency that is not a legal tender and is subject to market risk. The information provided in the article is not intended and does not constitute financial advice, trading advice or any other advice or recommendation of any kind provided or endorsed by NDTV. NDTV will not be liable for any loss arising from any investment based on any recommendations, forecasts or any other information contained in the article.
