Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics
Despite last week’s institutional Bitcoin outflows of $55 million, negative sentiment could be on the wane.
While key Bitcoin (BTC) metrics don’t paint a pretty picture, the bears could be running on fumes. Contrary to analysts warning that Bitcoin could dip to $38,000 “before an eventual breakout”, CoinShares and Arcane Research suggest that the tide could be turning.
In brief, Bitcoin institutional outflows were negative four out of the last five weeks, totaling $55 milion. The total assets under management fell to a three-month low of $35 billion midweek last week.
CoinShares’ findings illustrate that large investors in the Bitcoin ecosystem; those using companies such as Grayscale, CoinsXBT, ProShares, and ETC Group have been reducing their exposure to the digital asset.
Their actions are compounded by the fear and greed index hogging the “extreme fear” dial for two months, as Bitcoin spot buying volume hit a six-month low. If the fear and greed index enters a third consecutive month of extreme fear, it will be the second time to do so in the metric’s existence.
Traders are also trepidatious. According to Arcane Research, the seven-day average real BTC trading volume sits at $3.4 billion. It’s the lowest figure since July 2021, remembered as the trough of the mini bear market that occurred from May to July 2021.
Investors and spectators in the space will remember that following that moment, from August to October 2021, the BTC price swelled by more than 60%, buoyed by robust institutional investment.
Related: 43% of Bitcoin trading volume during US market hours: Arcane Research
Plus, with Bitcoin 30-day price volatility constrained to the lowest level seen for twelve months, at 2.5%, the spring is coiled.
Twitter analysts clamor for upside action. Popular Bitcoin bull @GalaxyBTC tells followers that $80,000 is on the horizon while @Tradermayne says the “bottom is in for the nth time.”
