TL;DR
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“Digital asset investment products” (i.e. cryptocurrencies) have seen $137 million in inflows over the past week ($742 million in the last month).
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Trading volumes surpassed the annual average of $1.4 billion, reaching $2.3 billion last week.
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And while all this was happening, money was flowing from Bitcoin short positions (a.k.a. “bets that BTC will fall in price”).
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Despite all this, crypto prices have (overall) remained relatively flat for the past two weeks. Creepy isn’t it? It feels like a storm is coming.
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 series of pointed silences, one-word answers, and a whole series of “I’m fine.”
Yeah, well – we’re getting a similar feeling with the crypto market…
Except it’s not spelling problems! Quite the opposite.
This is what feeds it all:
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“Digital asset investment products” (i.e. cryptocurrencies) have seen $137 million in inflows over the past week ($742 million in the last month).
☝️ That’s the largest amount of new money to hit the market since the end of 2021 (peak bull run)!
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PLUS! Trading volumes surpassed the annual average of $1.4 billion, reaching $2.3 billion last week.
…why is that good?
Crypto is currently in an uptrend and high or increasing volume in an uptrend often indicates a buying opportunity.
Which often leads to (you guessed it) buying more, and buying more often leads to higher prices.
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And finally – while all this was happening, money was pouring out of Bitcoin short positions (aka “bets that BTC will fall in price”).
For context, in April, traders were betting a total of ~$198 million that BTC would drop in price. Last week, that figure hit a low of ~$55 million.
Moral of the story: the market is starting to think it’s a stupid idea to bet against BTC now.
Okay, so if volumes are rising, short positions are falling and we see rising inflows… where is the price action?
We have no idea ¯\_(ツ)_/¯
Despite all this, crypto prices have (overall) remained relatively flat for the past two weeks.
Creepy isn’t it?