Institutional investors are increasingly bullish on seeing short bitcoin outflows.

Institutional investors have oscillated between bearish and bullish when it comes to short bitcoin outflows for the better part of this year. Each time though, the direction of their money always reflects how they currently view the crypto market. The same is true of last week, where the numbers pointed to further bullishness for these big investors.

Short bitcoin outflow continues.

Ever since the market began a recovery trend, short bitcoin outflows have been seen. The ETF was quite popular and successful when it was launched earlier this year, which perfectly timed the launch at the start of crypto winter. However, outflow data is showing that institutional investors are gradually abandoning their bearish stance.
digital asset.
The previous week came with $15 million in outflows for short bitcoin, which represented 10% of total assets under management (AuM) at the time. Last week marked another $2.4 million in outflows for the fund for the second week in a row, bringing its total outflows since September to $20 million. This figure now represents 15% of AUM for the fund since mid-September to date.

As expected, long Bitcoin was the opposite with $14 million in inflows for the past week. Last week also saw digital asset inflows of a record $4.6 million. Although these returns remain modest, it proves that institutional investors remain bullish. It now marks the seventh consecutive week of arrivals.

Behind the boom

General sentiment behind Bitcoin has been bullish and Twitter’s deal with Elon Musk has been a major driver behind it. The billionaire is a staunch supporter of cryptocurrencies, leading many to believe he will promote the use of bitcoin and other digital assets on the platform.
Following the completion of the deal, the value of cryptocurrencies skyrocketed during that time. Bitcoin was able to retest $21,000 for the first time in over a month. Naturally, other assets in the space have followed this trend.

However, there is a slight dip in positive sentiment due to the wait for a decision from the Fed. Another hike in interest rates will undoubtedly be detrimental to the crypto market, causing investors to take a defensive position as the market awaits the Fed’s statement.